Significant expansion to coverage of the ATO Tax Avoidance Taskforce
The Tax Avoidance Taskforce of the ATO will be provided with additional funding of $1bn to extend its market coverage. Since its inception in 2016, the Taskforce has raised more than $7bn from large public groups and multinationals, and $2.8bn from wealthy individuals and private groups. Programs launched by the Taskforce include tax reviews of the Top 1,000 public groups and Top 320 private groups.
Targeting multinationals, large public and private groups, trusts and high wealth individuals, Taskforce reviews will now extend to apply to advisors promoting tax avoidance strategies.
The Taskforce is expected to bring in extra revenue of $3.6bn over the next four years.
Clarifying the hybrid mismatch rules
Minor amendments will be made to the hybrid mismatch rules to clarify their operation in the context of multiple entry consolidated groups and trusts. These rules apply to arrangements in multinational groups where a tax mismatch occurs between two jurisdictions. For example, a tax deduction is claimed in one jurisdiction for a payment that is not assessed as income in the recipient jurisdiction; or a deduction is allowed in two jurisdictions for the same payment.
Recovering unpaid tax and superannuation
Over the next four years, the ATO will increase activities to recover unpaid tax and superannuation liabilities, focusing on larger businesses and high net wealth individuals. This measure will exclude small businesses.