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ATO Updates Information on the Behaviours, Characteristics, and Tax Issues that Attract the ATO's Attention — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) has announced an update of the information on the behaviours, characteristics, and tax issues that attract the ATO's attention. The ATO has also separately announced that some features of the way multinational enterprises are using offshore shipping service hubs has attracted the ATO's attention as presenting a higher risk of profit shifting.

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What attracts our attention

We have updated our information on the behaviours, characteristics and tax issues of privately owned and wealthy groups that attract our attention. This includes:

  • key risks relating to business structures such as consolidations, international transactions, ineligible businesses accessing lower company tax rates and self-managed superfunds
  • new issues for transactions relating to CGT small business concessions, excise and excise equivalent goods, fringe benefits tax, carry forward of revenue losses and private use of business assets
  • information on how we target illegal phoenix activity, refund fraud, identity crime and organised crime and the cross-agency taskforces we are involved in
  • information on taxpayers who avoid or delay payment of tax by non-lodgment of their tax returns where they have reportable fringe benefit amounts included in payment summaries and STP reporting.

The following behaviours and characteristics may also attract our attention:

  • tax or economic performance not comparable to similar businesses
  • low transparency of your tax affairs
  • large, one-off or unusual transactions, including the transfer or shifting of wealth
  • aggressive tax planning
  • tax outcomes inconsistent with the intent of the tax law
  • choosing not to comply, or regularly taking controversial interpretations of the law, without engaging with us
  • lifestyle not supported by after-tax income
  • accessing business assets for tax-free private use
  • poor governance and risk-management systems

We want to be transparent in our dealings and to help you get your tax and super obligations right. If you're concerned about your tax or super position, you can:

engage with us for advice about a complex transaction or arrangement

correct a mistake by requesting an amendment or making a voluntary disclosure.