For inclusion in the corporate transparency population, income tax returns must be lodged and processed by 1 September of the following income year.
There were 32 entities not previously published because their 2016–17 income tax returns were lodged and processed after 1 September 2018. Of these 32 entities, four amended their original return.
Of the 28 entities that did not amend their return:
- 14 reported nil tax payable
- 14 reported tax payable of $53.4 million (in total)
- six with tax payable of $9.6 million had a refund on assessment – deemed to be tax paid on time
- four with tax payable of $37.9 million had a debit on assessment and this debit was paid on time and in full – deemed to be tax paid on time
- three with tax payable of $1.8 million had a debit on assessment and this debit was paid late but in full – deemed to be tax paid to date
- one with tax payable of $4.1 million had a debit on assessment and this debit is unpaid in full – deemed to be tax not paid to date.
Of the four that amended their returns:
- three reported nil tax payable
- one with tax payable of $3.2 million had a debit on assessment in the initial lodgment which was paid late but in full – deemed to be tax paid to date.
Of the $56.6 million in tax payable, $47.5 million (84.0%) is deemed to be paid on time and $52.4 million (92.7%) is deemed to be paid to date.
Corporate entities' income tax return lodgment and payment dates are fixed based on the date their year of income ends. We apply a risk-based approach to ensuring lodgment and payment where these obligations are not met, including the application of penalties and interest.
Priority is given to processing different return types and demands and the time taken for the ATO to process returns can vary during the year. A few corporate entities with 2017–18 data being reported may, therefore, have met all of their lodgment requirements prior to 1 September 2018.
Through engagement with companies who haven’t lodged on time, we find a number of reasons for their behaviour. This includes information from third parties:
- being unavailable
- having reporting delayed due to structural changes (such as mergers, acquisitions and consolidation)
- where circumstances of the registered entity did not in fact have a legal obligation to lodge (such as those that ceased operating in all aspects except name).
There are also a number of companies identified as being in, or about to enter liquidation, which prevents them from being able to prepare and lodge a return.
Where companies still have outstanding lodgments, this may include escalation to default assessments or criminal prosecution for non-lodgment.