Many large corporate groups consist of smaller entities whose aggregated total income meets the transparency population income thresholds. If these entities are not consolidated for tax purposes, some or all of the entities may not individually meet the income thresholds for inclusion in the report.
The complexity and diversity of large corporate groups mean that the corporation's income may be distributed and returned by multiple entities within an economic group. This can change the nil tax paid percentages when the entire group is taken into consideration. For a detailed explanation, see Net losses and nil tax payable.
It is important to note that the total figures in this report cannot reflect the:
- complexity of the tax system
- relationships between entities
- calculations behind the numbers
- extent and nature of any ATO activity.
Corporate tax transparency reports are our analysis of the tax return data published in the annual Report of entity tax informationExternal Link. Some names listed in the Report of entity tax information may be recognisable to the public and connections to high-profile individuals may be the subject of public knowledge. Confidentiality provisions of the tax law prevent us from disclosing certain information.
Tax information is protected by privacy legislation, this limits what we can cover in this report such as the report does not include operating profits, tax losses or tax offsets, which can help to provide a more complete understanding of a corporate's tax position.
The data does not reflect any audit or compliance work. The report is based on information contained in an entity's tax return at a point in time. The tax return may later be amended, and the amount published in this report may no longer reflect the amount of tax actually paid. However, when we lock in go forward outcomes as parts of settlements these will be reflected in the future tax returns lodged and the outcomes reflected in future reports.
Caution needs to be taken when comparing the ownership cohorts, as they are not directly comparable. For example, Australian private companies will be under-represented in counts because of the different income reporting thresholds.
Figures in this report have generally been rounded, which may result in differences between totals and sums of components in the charts and text.
Changes to the tax law will alter the threshold for inclusion in the corporate tax transparency report for the 2022-23 income year and each later income year. The amendment changes the $200 million income threshold for Australian-owned resident private companies to $100 million. This will affect the data that will be reported in 2024 and onwards.
You can read more about the law change in Treasury Laws Amendment (2022 Measures No. 1) Act 2022External Link.