ATO warns businesses not to use loopholes to exploit $30bn Covid tax concessions

Original article by Paul Karp
The Guardian Australia – Page: Online : 30-Oct-20

Australian Taxation Office second commissioner Jeremy Hirschhorn has urged companies to "think twice" about using artificial mechanisms to take advantage of stimulus measures contained in the recent federal budget. Worth over $30 billion, the measures relate to instant expensing and loss carryback provisions. He has also criticised companies that used JobKeeper wage subsidies to pay dividends, noting that there had been adverse community reaction to companies who had done so. Hirschhorn notes 92.5 per cent of companies comply with their tax obligations when lodging tax returns, with this increasing to 96.3 per cent after ATO compliance activity.

CORPORATES
AUSTRALIAN TAXATION OFFICE

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