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
