Improving the integrity of the Tax System
The Budget has introduced a number of measures intended to improve the integrity of the taxation system.
This will be achieved by increasing business tax compliance, closing loopholes, strengthening tax evasion systems and increasing the payment of tax instalments.
The budget has revealed further tax compliance measures including:
ATO Trust Taskforce
The Government has increased funding to the ATO to undertake compliance activity targeted at high wealth individual taxpayers who have been involved in tax avoidance and evasion using trust structures.
The ATO will target taxpayers who use trusts to conceal income, mischaracterise transactions, artificially reduce trust income amounts and underpay tax.
Enhance third party data matching
The ATO has received extra funding to improve compliance by expanding data matching with third party information.
The funding will establish new and strengthen existing reporting systems and will affect:
- Sales of real property, shares (including options and warrants) and units in managed funds
- Transactions through merchant debit and credit services
- Certain taxable government grants and payments
- Managed investment trust and partnership distributions, company dividend and interest payments
- Transactions reported to the ATO by the Australian Transactions Reports and Analysis Centre
The ATO will have more resources than ever before to ensure that businesses remain compliant. This will put more pressure on small businesses to ensure that they are rigorous in their tax compliance and reporting requirements.
Integrity checks on ABN registration
The ATO will be strengthening up-front checks for issuing Australian Business Numbers (ABN) and will encourage businesses to use the AUSkey and the online services of the Australian Business Register.
This is intended to reduce the regulatory costs and minimise the compliance burden.
Oculus’ systems are always updated to help ensure total compliance. If you are concerned by the ATO actions, let us review your systems and procedures.
