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  • Ensuring corporate taxpayers pay the correct amount of tax

    As administrators of a very complex system, we monitor the environment to ensure that the tax law is achieving its intended outcomes. An effective, functioning tax system supports the social benefits we all enjoy. Our tax system relies on a high level of willing participation. This is built on both community confidence in the ATO as administrator of the system, and by taxpayers paying the right amount of tax.

    Based on our detailed knowledge of the tax system as it operates in practice, most large corporate groups pay the right amount of tax. Our Tax and Corporate Australia publication details how we assure that corporate taxpayers pay the right amount of tax and how we assist them to do so. It sets out the ways we are improving the system for those who want to comply, and how we are taking firm action against those who choose not to. It also discusses our areas of focus, and details our past compliance performance.

    For private companies, we use sophisticated data-matching techniques to detect their relationship with other private group entities, including wealthy individuals, companies, trusts and partnerships. We refer to this as a 'private group approach'. This approach enables us to risk-assess compliance behaviours and target our assurance approaches at a group level.

    We cross-reference our understanding of market performance against other measures on an ongoing basis. Any anomalies are identified, analysed and mitigated – through improvements to our detection processes or further review – to ensure the ongoing health of the tax system.

      Last modified: 13 Dec 2018QC 44476