TAX COLLECTION – AUSTRALIA

$100m lost in Plutus tax scam

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Original article by Geoff Winestock, David Marin-Guzman
The Australian Financial Review – Page: 1 & 4 : 15-Jan-18

The liquidators of Plutus Payroll, the company at the centre of a tax fraud case, have released their first report to its creditors. Plutus Payroll and its associated companies have total debts of $A136 million. Based on how much Tim Norman of Deloitte Financial Advisory estimates will be recoverable from Plutus Payroll itself, it appears that the Australian Taxation Office may have to forgo around $A100 million. It is owed all but $A2 million of the debt.

CORPORATES
PLUTUS PAYROLL AUSTRALIA PTY LTD, AUSTRALIAN TAXATION OFFICE, DELOITTE FINANCIAL ADVISORY, SYNEP, HARTFORD INVESTMENTS, KISMETS

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

Good timing, as Morrison tips tax cuts in 2018

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Original article by Jacob Greber, Laura Tingle
The Australian Financial Review – Page: 9 : 11-May-17

The Australian Government aims to limit the nation’s tax-to-GDP ratio to 23.9 per cent. This cap is expected to be reached in 2022-23, although this could occur earlier due to factors such as income tax "bracket creep". Treasurer Scott Morrison has conceded that the Government may have to take action to avert this before 2022-23. He has flagged the possibility of personal income tax cuts in 2018, prior to the next federal election. The tax-to-GDP ratio is projected to be 21.5 per cent in 2016-17.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIAN LABOR PARTY

Deficit repair slips even with profit surge: Access

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 5 : 1-May-17

Chris Richardson of Deloitte Access Economics is predicting a 2016-17 federal Budget deficit of more than $A38.3 billion, which is $A1.8 billion worse than predicted in the Government’s mid-year forecast. Richardson says that while a rise in company profits will eventually result in improved corporate tax collection, poor wages and jobs growth means that there will not be a comparable rise in personal tax collection. He forecasts that tax revenue will grow by 6.2 per cent in real terms in 2017-18.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA

Tax take for 2014-15 falls short by $9.4b

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Original article by Fleur Anderson
The Australian Financial Review – Page: 6 : 3-Nov-15

The Australian Taxation Office (ATO) collected $A336.8 billion in net tax in 2014-15. This figure is $A15.2 billion or 4.7 per cent higher than tax collected in 2013-14 but still $A9.4 billion, or 2.7 per cent, smaller than the amount expected on budget night in 2014. The ATO explained in its 2015 annual report that tax collections were negatively affected by lower growth in profits and wages.

CORPORATES
AUSTRALIAN TAXATION OFFICE