The Tax Avoidance Taskforce continued to meet and exceed commitments to Government and as a result, the Government announced further funding to expand the taskforce. The October 2022 Budget further extended and expanded the taskforce to 30 June 2026 with around an additional $1.1 billion over the 4-year period.
The taskforce has surpassed its commitment to government each year since it began. Since 1 July 2016, the ATO has:
- raised $32.7 billion in liabilities against public groups, multinationals, wealthy individuals and associated private groups (including trusts and promoters)
- collected over $18.1 billion in cash.
During the 2022–23 financial year, the taskforce extended the operations of its existing programs and commenced work in new priority areas such as private equity, in line with the Government announcement.
The taskforce has helped the ATO raise over $5.1 billion in liabilities and collect $2.8 billion in cash in the 2022–23 financial year.
Throughout the year, in addition to its work with the largest taxpayers, the taskforce reached further into populations such as the medium and emerging public companies and private groups populations.
The taskforce also developed new programs to engage with taxpayers early and address new and emerging risks.
The Commercial Deals program is an example where privately owned and wealthy groups have been able to enter into pre-lodgment agreements to secure certainty around their commercial deals.
Advisers also experienced a refreshed focus regarding their own tax affairs as well as the promotion and involvement in tax avoidance schemes.
Highlights for 2022–23
Highlights of the Tax Avoidance Taskforce contribution for 2022–23 include:
- Our compliance activities generated around $4.0 billion in tax liabilities and around $2.1 billion in net cash collections from large public groups and multinational corporations, wealthy individuals and private groups.
- Rio Tinto Limited announced they have settled all tax disputes with the ATO. This agreement relating to transfer pricing, will see an additional $613 million of tax paid on top of the $378 million already paid in respect of amended assessments issued.
- The Full Federal Court gave a partly favourable decision in Commissioner of Taxation v Guardian AIT Pty Ltd [2023] FCAFC 3 concerning section 100A and Part IVA. The Court upheld the Commissioner’s appeal on Part IVA (a separate anti-avoidance measure) in 2013. The Court dismissed the remainder of the Commissioner’s appeal.
- The Full Federal Court handed down a mostly favourable decision in B&F Investments Pty Ltd as trustee for the Iluka Part Trust v Commissioner of Taxation [2023] FCAFC 89.
- Ampol Limited announced that it had reached a settlement with the ATO, which resolves the dispute for past years back to 2014 for $157 million and locks in the tax outcomes of the arrangement to 2033.
- The first diverted profits tax (DPT) case was heard in the Federal Court of Australia. The case concerns the taxpayers PepsiCo, Inc. and Stokely-Van Camp, Inc appealing against the first DPT assessments issued by the Commissioner in December 2020.
- The Automatic Exchange of Information (AEOI) Self-Review Guide and Toolkit was published on ATO Law on 15 July. The guide, a world first, is designed to provide practical information for Common Reporting Standards (CRS) and Foreign Account Tax Compliance Act (FATCA) reporters on how to conduct a self-review of their AEOI framework, including governance, due diligence, data and reporting systems. The response so far has been very positive from CRS and FATCA reporters.
- We started work on the Modernisation of Trust Administration Systems (MTAS), which will deliver improvements to the lodgment experience for taxpayers and assist ATO’s data driven decision making processes.
- We imposed administrative penalties for false or misleading statements for legal professional privilege claims made in response to formal notices.
- The 4 largest tax advisory firms published and adopted the Large Market Tax Adviser Principles which were developed with input from the ATO and the Tax Practitioners Board. The principles complement the existing regulatory framework and commit firms to have in place a documented system of quality management, including how they deal with higher risk engagements.