The Australian Taxation Office (ATO) recently released its corporate tax transparency report, which shows that large corporations are making greater efforts to comply with corporate tax laws and pay their fair share. According to the report, in 2019, only 6% of companies had a “high assurance” rating, while that number grew to 49% in 2021. Another 30% had a “medium assurance” rating. The ATO believes that corporate tax compliance is becoming a priority, largely due to the Tax Avoidance Taskforce, which has collected more than AUD 10 million in additional tax dollars from corporations.
Increased Corporate Tax Compliance in Australia
The Tax Avoidance Taskforce has implemented the “justified trust” program, which requires certain large businesses to prove that they are paying the right amount of tax. Companies with lower assurance ratings can expect reviews and possibly even audits. To learn more about corporate tax compliance in Australia, click here.
Over the past few years, governments have implemented various programs and penalties to promote corporate tax compliance. The ATO’s corporate tax transparency report shows that these efforts have been successful, with more corporations making voluntary efforts to pay their fair share of taxes.
- The ATO’s corporate tax transparency report shows an increased rate of corporate tax compliance in Australia.
- The Tax Avoidance Taskforce has helped collect more than AUD 10 million in additional tax dollars from corporations.
- Companies with lower assurance ratings can expect reviews and possibly even audits.