Tax Compliance

  • Tax Compliance determination of large corporate groups is never simple.
  • There are inherent risks due to the business complexity & uncertainties around the law.
  • The behaviour of large corporate groups/MNCs in recent times was seen as avoiding tax in Australia by shifting the profits outside the Country.



Corporate Groups & Income Tax

Corporate Group may have lower taxable incomes than the economic profits and pay no tax for the below reasons:

  • Business Losses
  • Special Tax Rules for Trusts
  • Tax Concessions
  • Australian Companies expanding offshore
  • Offshore Companies investing in Australia
  • Investing in Australian Companies



Corporate Tax Collections

  • A long-term correlation has been observed between the pre-tax profits & the tax payable of public listed businesses.
  • This correlation gives the confidence that the growth in tax payable is appropriate, given the net profit reported by these public listed businesses.



Organisation for Economic Co-operation & Development (OECD) Pillars of Compliance

 

Large Corporate Groups Lodgment Performance in FY2020

Larger Corporate Groups Payment Performance in FY2020