What is the proposed measure?
The Government will provide $28.2 million to the ATO to target serious and organised crime in the tax system, extending the existing measure by a further four years to 30 June 2021.
Who will it affect?
Individuals and entities involved in serious tax crime. When will it apply?
The newly announced funding applies from 2017-18 to 2020-21.
Comment:
The extra $28.2 million funding that will be given to the ATO to target and address serious and organised tax crime is expected to generate extra tax revenue of over $408 million – nearly 15 times the cost.
This measure complements the whole-of-government Black Economy Taskforce initiatives also announced in the Budget.
The Government has announced three Black Economy Taskforce initiatives:
When will it apply?
Early this year, the whole-of-government Black Economy Taskforce was formed and submitted a report to the Government. This Budget includes several initiatives.
The ATO funding is for programs directed at changing black economy and related behaviours such as non-lodgment, omission of income and non-payment of employer obligations. The Government will make decisions about the future of these programs beyond 2017-18 in light of the Black Economy Taskforce’s final report, expected in October 2017.
Sales suppression technology and software allow businesses to understate their incomes by untraceably deleting selected transactions from electronic records. Income earned from these transactions and tax owing from this income is not reported to the ATO.
The taxable payments reporting system already operates in the building and construction industry, where it has resulted in improved contractor compliance. This measure brings payments to contractors in the courier and cleaning industries into line with wages, which are reported to the ATO. The first annual report will be required in August 2019, covering information collected from 1 July 2018.
Become a member today.
Need more information? Click below to view membership benefits or get in touch to discuss how being a member can help you in your role.
Join us