ADMINISTRATIVE AGENCIES – AUSTRALIA

ATO eyes legal fight against BHP, Rio hubs

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Original article by Nick Tabakoff
The Australian – Page: 17 & 20 : 5-Dec-17

Tax commissioner Chris Jordan says the Australian Taxation Office may take BHP Billiton and Rio Tinto to court over their use of Singapore marketing hubs. Jordan claims that the use of such hubs is reducing Australia’s tax base, and getting some "judicial guidance" on their use may be the best way forward. BHP and Rio Tinto are both embroiled in large tax disputes with the ATO over their use of the marketing hubs.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Cash-only hot spots in sights of ATO

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 4-Dec-17

The Australian Taxation Office is currently targeting areas of the nation that have a lot of cash-only businesses. Such areas include Glenelg in South Australia and Sunnybank in Brisbane, with businesses being investigated including hairdressers and beauty parlours. The areas in question often have high immigrant numbers, and ATO Commissioner Chris Jordan, says Chatswood in Sydney could be one area for future targeting. The ATO’s crackdown on the cash economy has already netted it $A200 million in unpaid tax.

CORPORATES
AUSTRALIAN TAXATION OFFICE

$5bn hit targets tech giants

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Original article by Nick Tabakoff
The Australian – Page: 1 & 6 : 30-Nov-17

Australian Taxation Office commissioner Chris Jordan says its clampdown on multinationals has unearthed $A5 billion in unpaid taxes in just 16 months. Jordan claims that multinationals have tried to intimidate the ATO into giving them reduced assessments, and that they have tried to "bamboozle" him with excessive documentation and diagrams. Jordan is particularly critical of the manner in which Google has structured its business affairs in Australian to avoid paying as little tax as possible.

CORPORATES
AUSTRALIAN TAXATION OFFICE, GOOGLE INCORPORATED, GOOGLE AUSTRALIA PTY LTD, FACEBOOK INCORPORATED, AMAZON.COM INCORPORATED, MICROSOFT CORPORATION, CHEVRON CORPORATION, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

ATO chases $2.5bn corporate shortfall

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Original article by Ben Butler
The Australian – Page: 19 : 11-Oct-17

The Australian Taxation Office estimates that the corporate "tax gap" averaged 5.8 per cent between 2008-09 and 2014-15. The ATO hopes to reduce corporate tax underpayments to about $A2.5bn, and deputy commissioner Jeremy Hirschhorn notes that transfer pricing is a significant contributor to the tax gap. He notes that a number of measures have been implemented in recent years to ensure that companies meet their tax liabilities, including the diverted profits tax and the Multinational Anti-Avoidance Law.

CORPORATES
AUSTRALIAN TAXATION OFFICE, GOOGLE INCORPORATED, CHEVRON CORPORATION, FEDERAL COURT OF AUSTRALIA

Super non-payment drops to $2.8 billion, says ATO

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Original article by Joanna Mather
The Australian Financial Review – Page: 5 : 29-Aug-17

The Australian Taxation Office estimates that workers are missing out on around $A2.85 billion worth of superannuation payments each year. The ATO contends that the gap between what workers should receive under the superannuation guarantee rules and what they have actually received is due to factors such as unscrupulous employers and firms going into liquidation. Its figure is significantly lower than the $A5.6 billion estimated by Industry Super Australia. The Senate Economics Committee recently called for greater fines for employers found not to be complying with superannuation guarantee rules.

CORPORATES
AUSTRALIAN TAXATION OFFICE, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIA. DEPT OF FINANCE

Tax blitz hits top 1000 firms

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Original article by Nick Tabakoff
The Australian – Page: 1 & 2 : 22-Aug-17

The Australian Taxation Office wants all companies with turnover of more than $A250 million to disclose their "reportable tax positions", starting from the 2017-18 financial year. The move has been questioned by BDO senior tax partner Tony Sloan, who says it represents a significant reversal of the ATO’s self-assessment regime. He says the ATO appears to be of the view that its reportable tax position policy worked well with Australia’s biggest companies, and so it has decided to lower the reporting threshold.

CORPORATES
AUSTRALIAN TAXATION OFFICE, BDO AUSTRALIA LIMITED

ASIC, ATO target ‘phoenix’ advisers

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Original article by Duncan Hughes
The Australian Financial Review – Page: 1 & 4 : 24-Jul-17

Australia loses around $A3 billion a year as a result of companies being reborn, otherwise known as phoenix activity. Losses occur in areas such as taxation, salaries and superannuation payments. A taskforce comprising bodies such as the Australian Taxation Office, the Australian Securities & Investments Commission and the Fair Work Ombudsman has been formed to try to combat the impact of phoenix activities, with advisers who try to encourage business owners to " rebirth" their company one of its main targets. The Black Economy Taskforce, which is investigating the cash economy, is also developing strategies to combat phoenix activities.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. FAIR WORK OMBUDSMAN, KPMG AUSTRALIA PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Cranston’s long ATO career ends in court

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Original article by Joanna Mather, Misa Han
The Australian Financial Review – Page: 7 : 14-Jun-17

Australian Tax Office veteran Michael Cranston has formally resigned in the wake of revelations about a massive tax fraud that involves his son and daughter. Cranston himself was not involved in the $A130m tax fraud, but he has been charged with two counts of abuse of public office. The deputy commissioner of taxation has been suspended without pay since the tax scam was exposed, while another three ATO officials have also been suspended while the investigation into the scandal continues.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Senate inquiry blasts ATO on unpaid super

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Original article by Michael Roddan
The Australian – Page: 23 : 3-May-17

It is estimated that about three million Australian workers do not receive their compulsory superannuation contributions, which equates to around $A6bn per year. A Senate economics committee inquiry has recommended that the Australian Taxation Office should adopt a more proactive approach to non-compliance with the super guarantee regime. The ATO’s focus at present is on a self-reporting system for employers who fail to pay some or all of the guarantee.

CORPORATES
AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD

Multiple SMSF strategy may prove illegal

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Original article by Sally Patten
The Australian Financial Review – Page: 5 : 24-Apr-17

Changes to superannuation tax rules from 1 July 2017 may prompt some investors who already have one self-managed super fund (SMSF) to set up a second one. However, the Australian Taxation Office has indicated that it will keeping a close eye what it perceives as any attempt to reduce tax by setting up a second SMSF. Fines, penalties and even disqualification are possible remedies available to the ATO.

CORPORATES
AUSTRALIAN TAXATION OFFICE, SMSF ASSOCIATION, HLB MANN JUDD