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The ATO Motivates Companies to Pay Corporate Taxes

Over the last few years, plenty of governments have set up programs and penalties to improve corporate tax compliance—the Australian Taxation Office says, Down Under, at least, it’s working. The latest corporate tax transparency report, which debuted on December 10, shows large corporations are making voluntary efforts to pay their fair share of tax and comply with corporate tax laws. In 2019, only 6% of companies had a “high assurance” rating. That number grew to 49% in 2021. Another 30% came in with less impressive “medium assurance.” The ATO thinks that corporations are making tax compliance a high priority thanks in large part due to the Tax Avoidance Taskforce, a group that has helped to collect more than AUD 10 million in additional tax dollars from corporations. The Taskforce’s “justified trust” program requires certain large businesses to prove that they are paying the right amount of tax. As for those companies who didn’t rate so well, they can definitely expect reviews and quite possibly, audits. Read more about tax compliance in Australia here.