Most large corporate groups pay the right amount of tax. There will always be some who deliberately avoid their tax obligations. Our message to businesses operating in Australia is clear: you must pay the right amount of tax on the profits you earn here.
We use a range of approaches to support our assurance and compliance engagement with large business, including taking preventative and corrective action. Both one-to-one and one-to-many approaches are used with large corporate groups to assist them to comply with their tax obligations.
We take robust compliance action to test the application of the law if a large corporate takes a position we have flagged as being of concern
Our Tax and Corporate Australia publication details how we assure corporate taxpayers pay the right amount of tax and how we assist them to do so.
The Action Differentiation Framework is our strategic approach to engaging with public and multinational corporations. We tailor our engagement based on our understanding of the corporation's affairs, which is informed by:
- size
- transparency of engagement with us
- choices and behaviours evidenced in tax affairs
- the level of risk exhibited.
For private companies, we use sophisticated data-matching techniques to detect their relationship with other private group entities including:
- wealthy individuals
- companies
- trusts
- partnerships.
We refer to this as the private group approach. This approach allows us to risk-assess compliance behaviours and target our assurance approaches at a group level. We support privately owned and wealthy groups to pay the right amount of tax through tax performance programs for private groups designed to:
- support willing participation in the tax system
- help them to get things right
- find and address deliberate tax avoidance.
For private companies, we cross-reference our understanding of market performance against other measures. Where anomalies are identified they are analysed and mitigated to ensure the ongoing health of the tax system.
See also
- Privately-owned and wealthy groups
- Public business and international groups
- Large corporate groups income tax gap
- High wealth income tax gap