For inclusion in the corporate transparency population, income tax returns must be lodged and processed by 1 September of the following financial year.
There were 9 entities not included in the 2013–14 transparency population because their income tax returns were not lodged and processed prior to 1 September 2016; however 78% of tax was paid on time. The 2013–14 assessment year data for these entities is published as part of the 2015–16 report.
There were 59 entities not included in the 2014–15 transparency population because their income tax returns were not lodged and processed prior to 1 September 2016; however 84% of tax was paid on time. Late payments may attract interest and penalties.
Corporate entities' income tax return lodgment and payment dates are fixed based on the date their year of income ends. We apply a risk-based approach to ensuring lodgment and payment where these obligations aren’t met, including the application of penalties and interest.
Priority is given to processing different return types and demands and the time taken for the ATO to process returns can vary during the year. A few corporate entities with 2015–16 data being reported may, therefore, have met all of their lodgment requirements prior to 1 September 2017.
Through engagement with companies who haven’t lodged on time, we find a number of reasons for their behaviour. This includes information from third parties being unavailable, reporting being delayed due to structural changes (such as mergers, acquisitions and consolidation), as well as circumstances where the registered entity did not in fact have a legal obligation to lodge (such as those that ceased operating in all aspects except name). There are also a number of companies identified as being in, or about to enter liquidation, which prevents them from being able to prepare and lodge a return.
Where companies still have outstanding lodgments, we will pursue lodgment and this may include escalation to default assessments or criminal prosecution for non-lodgment.