Australian Tax Office Gets Tough

August 6, 2009 Taxation in Australia  No comments

The Australian Tax Office launched their new program on the 6th of August aimed at ensuring compliance from Australian executives and wealthy.

The Australian Tax Office (ATO) has stated that they will be targeting the wealthy of Australia in a bid to increase tax compliance and tax revenues. The corresponding 2008-2009 program netted an extra A$44 million from 440 executive and director reviews and audits and over A$1 billion from 260 large business “comprehensive risk reviews”.

This year the search for compliance dodgers has expanded in its data-matching technologies and even has the ATO scouring news sources for information on company mergers, and reminding the involved directors to declare any benefits that they garner from such activity. Greater focus will also be placed on reminding employees who receive part of their income from international sources to declare that income.

Bruce Quigley, ATO’s second commissioner of compliance, stated that in the current program the ATO has the ability to cross check declared data in real time. This includes the monitoring of large property purchases and will even include the search for private boat or airplane acquisitions. With the current downturn in the economic climate and expanded capacity for financial data acquisition the ATO will hold a higher scrutiny of any claimed losses, whether by company or individual.

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