KPMG Brisbane hosted senior ATO officers on 25 February regarding the compliance program for the Top 500, Next 5,000 and medium and emerging private groups.
The Australian Taxation Office (ATO) says taxpayers should actively identify tax risks early to prepare for its planned reviews.
This was one of the key messages delivered this week during an event hosted by KPMG Brisbane, attended by ATO officers.
It follows the ATO announcement late last year that it will now be tailoring its compliance activity in the private wealth market in accordance with three segments.
The segments are:
This compliance activity will mirror the Top 100/Top 1,000 engagement approach in the large market in the sense that the Top 500 program will involve real time, ongoing, one-on-one engagement and the Top 5,000 program will involve Streamlined Assurance Reviews to be undertaken over a four-month period. The medium and emerging private groups can expect risk reviews to be undertaken based on the ATO’s improved data-matching and risk identification systems.
This compliance activity will be funded by the additional $1 billion in funding received by the ATO’s Tax Avoidance Taskforce in the FY20 budget, which is expected to raise an additional $3.6 billion in additional revenue.
These ATO reviews will be based on the ATO’s Justified Trust approach which seeks to provide assurance that taxpayers are paying the right amount of tax based on the following four principles:
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