Small-to-medium enterprises (turnover $100 million-$250 million)
Part of our strategy involves risk-assessing all taxpayers in this segment over a four-year period. This year, the third year of the program, we completed 1,174 audits and reviews, raising $146.6 million in liabilities.
Indicators of significant improvement in voluntary compliance resulting from our strategies include:
- income tax liabilities voluntarily reported in annual small-to-medium enterprise returns increased by at least $220 million in 2009-10
- late lodgments by taxpayers have decreased by 26.5%
- the percentage of taxpayers appearing in our risk models has decreased from 78% to 63%
- greater early engagement with us, for example, requests for private written advice more than doubled in the past year.
We continued to focus on the evasion of tax and superannuation guarantee through the deliberate, systematic and sometimes cyclic liquidation of related corporate trading entities. In 2010-11 we finalised 133 phoenix cases and raised $70.7 million in taxes and penalties. In 2010-11 we issued 10 Security Bond Demands to phoenix operators relating to an existing or future debt.