• Micro enterprises and individuals

    In the micro enterprises market there are more objections to adjustments to activity statement refunds than to income tax audit adjustments. Objections received in the individual market segment mostly relate to income tax. In many cases, objections are allowed because taxpayers provide the information requested during an audit on objection. This indicates we may be able to further minimise these disputes with increased communication.

    In 2011-12, the ATO increased its audit and review activity in the individuals market, in particular increasing the use of data matching and refund checking capabilities. This resulted in more objections, but with a large percentage relating only to penalties and interest. This reflects both the accuracy of the information collected by the ATO for matching purposes and the increased sophistication of the ATO's refund checking systems.

    Table 2.1A Compliance activity by market segment

     

    2011-12

    Market Segment

    Active Compliance activities with liability adjustments

    Objection receipts

    Large businesses

    643

    215

    Small-to-medium enterprises

    10,440

    1,079

    Micro enterprises

    45,776

    11,334

    Government

    162

    21

    Not for profit

    1,480

    103

    Individuals

    540,923

    21,015

    Total

    599,424

    33,767

    Notes:

    1. Active Compliance activities include audits, risk reviews, investigations, voluntary disclosure campaigns, and targeted campaigns aimed at ensuring taxpayers know what they need to do to comply with the law.
    2. Objections received can refer to more than one assessment as well as one or more issues.
    3. Objections received numbers include those instances where the taxpayer is objecting to their own self-assessment.

    Table 2.1B Settlements registered by market segment

     

    2011-12

       

    $ Million

     

    Market Segment

    Number of settlements registered

    Pre-settlement position

    Settled position

    Variance

    Variance
    as a % of
    pre-settlement position

    Individuals

    65

    92.3

    54

    41.3

    45%

    Micro enterprises

    139

    147.2

    53.5

    93.7

    64%

    Small-to-medium enterprises

    16

    27.7

    9.3

    18.4

    66%

    Large businesses

    17

    408.6

    215.5

    193.1

    47%

    Government

    2

    3.3

    1.7

    1.6

    48%

    High wealth individuals

    15

    240.3

    150.3

    90

    37%

    Not for profit

    2

    1.3

    0.2

    1.1

    85%

    Total

    256

    920.7

    481.5

    439.2

    48%

      Last modified: 15 Feb 2013QC 26462