The first year of the Tax Avoidance Taskforce in 2016–17 saw significant progress in implementing a stronger compliance framework. The funding provided by the government over four years has given us additional resources for increased scrutiny in investigating and challenging tax avoidance strategies.
Throughout the first year of the Tax Avoidance Taskforce in 2016–17:
- Our engagement and assurance work saw an increase in voluntary disclosures to correct tax positions. This was the first time we have provided the community with this level of assurance. We are continuing this work and by June 2020 we will have reviewed the Top 1,000 public groups and Top 320 private groups to ensure they are paying the right amount of tax in Australia.
- We introduced the multinational anti-avoidance law (MAAL), effective from 1 January 2016, which saw an estimated $7 billion of additional income per annum included in the Australian tax base.
- We introduced the diverted profits tax (DPT) providing a major deterrent to profit shifting by significant global entities (SGEs). The DPT has been designed to ensure profits made in Australia remain in Australia, and around 1,600 SGEs are in its scope.
- We published a Law Companion Guide for the DPT and Practical Compliance Guide to assist taxpayers.
- Wealthy individuals and related private groups were a focus under the taskforce. Our program of work applied differentiated client approaches ranging from one-to-many education programs, 1:1 ongoing engagement, to risk and audit programs and, where appropriate, prosecution.
- We recruited people with the knowledge and expertise to make a difference. This was supplemented by the appointment of senior tax specialists to guide, mentor, train and advise our compliance officers.
In the first year of the taskforce, we raised more than $4 billion in liabilities from large public groups and multinationals. We also raised around $970 million in liabilities from private groups and wealthy individuals, including trusts and promoters.