TAXATION – AUSTRALIA

Bringing forward tax cuts in federal budget fair, but not very effective: Deloitte

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Original article by Killian Plastow
The New Daily – Page: Online : 28-Sep-20

The federal government has flagged bringing forward tax cuts planned for 2024-25 when it hands down the budget on 6 October. There have been claims that doing so would increase inequality in Australia, but Chris Richardson from Deloitte Access Economics contends that the tax cuts are "fair". However, he suggests that while the tax cuts will help to stimulate the economy, other measures such as spending on infrastructure or social housing could be more effective, as the cuts will generally benefit high-income earners who are more likely to save the extra money than spend it.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED

Aussie workers among highest taxed in OECD

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Original article by Tom McIlroy
The Australian Financial Review – Page: 10 : 1-May-20

New figures show that workers in OECD member nations had an average income tax rate of 15.8 per cent in 2019. However, Australian workers on the average wage paid an income tax rate of 23.6 per cent. Denmark, Iceland and Belgium were the only OECD nations that had a higher average income tax rate. Grant Wardell-Johnson of KPMG notes that personal income tax accounts for nearly half of Australia’s tax base.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, KPMG AUSTRALIA PTY LTD

Tax reform cure for virus fever

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Original article by Patrick Commins
The Australian – Page: 1 & 6 : 22-Apr-20

Reserve Bank of Australia governor Philip Lowe has warned that the nation’s GDP growth will fall by around six per cent in 2020 due to the coronavirus pandemic. However, he says the economy should begin to recover in September, with GDP growth of 6-7 per cent expected in 2021. Lowe also says the unemployment rate could peak at 10 per cent in coming months, and it is likely to remain above six per cent for several years. Lowe adds that total hours worked in Australia are forecast to fall by 20 per cent in the first half of 2020. Lowe has also used a speech in Sydney to argue that industrial relations and tax reform should be considered in the wake of the pandemic.

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RESERVE BANK OF AUSTRALIA

ATO plugs up cash-in-hand payments leak

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Original article by Tom McIlroy
The Australian Financial Review – Page: 8 : 19-Jun-19

The Australian Taxation Office has signalled that it will crack down on companies that make cash-in-hand payments to their employees. Assistant commissioner Peter Holt says that from 1 July, payments to workers will only be tax deductible if they comply with pay-as-you-go withholding and reporting requirements. The crackdown is in response to recommendations made by the federal government’s Black Economy Taskforce, which has estimated that the cash economy is worth up to $50bn a year.

CORPORATES
AUSTRALIAN TAXATION OFFICE

How ATO is catching more fraudsters

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Original article by Tom McIlroy
The Australian Financial Review – Page: 10 : 11-Dec-18

The Australian Taxation Office has joined forces with its peers in the US, Canada, the UK and the Netherlands to establish the Joint Chiefs of Global Tax Enforcement group. The five tax authorities will co-operate in combating activities such as tax fraud, organised crime and money-laundering. Assistant tax commissioner Peter Vujanic says the ATO’s data-matching and analytical capabilities means there is now a much higher probability that tax-related crimes will be detected, regardless of their level of sophistication.

CORPORATES
AUSTRALIAN TAXATION OFFICE, UNITED STATES. INTERNAL REVENUE SERVICE, GREAT BRITAIN. HM REVENUE AND CUSTOMS, CANADA. REVENUE AGENCY, NETHERLANDS. FISCAL INFORMATION AND INVESTIGATION SERVICE, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN CRIME COMMISSION, AUSTRALIAN BORDER FORCE

Windfall tax take balancing the books

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Original article by David Uren
The Australian – Page: 4 : 26-Oct-18

New figures show that the federal government had a balanced Budget in the 12 months to September, with cash receipts and expenditure both totalling $257.4bn. Meanwhile, the deficit for the first three months of 2018-19 was just $10.5bn, well below the forecast of $19.5bn in May. The figures also show that company tax revenue was 13.8 per cent higher than in the first quarter of 2017-8 and personal income tax revenue was 6.3 per cent higher. Finance Minister Mathias Cormann says the improved Budget position will be at risk if Labor wins the next election.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Tax fraud prosecutors tip raft of fresh charges

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Original article by Sam Buckingham-Jones
The Australian – Page: 4 : 14-Mar-18

Prosecutor David Moorhouse has told a Sydney court that it might take another 4-6 months to prepare the brief of evidence in a $A165m tax fraud case. Ten people have been charged with a range of offences, including the son and daughter of the Australian Taxation Office’s former deputy commissioner, Michael Cranston. Moorhouse also said the defendants may face additional or amended charges when the brief is completed. Magistrate David Price set a deadline of 13 July to file the completed brief.

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AUSTRALIAN TAXATION OFFICE, AUSTRALIAN FEDERAL POLICE

ATO cracks down on other work-related deductions

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Original article by Frank Chung
News.com.au – Page: Online : 22-Feb-18

The Australian Taxation Office has signalled its intention to target tax deductions for dubious work-related expenses in 2018. ATO assistant commissioner Kath Anderson says workers claimed a record $A7.9bn worth of deductions for "other" work-related expenses in 2017. She says many people attempt to claim a tax deduction for private expenses and pass it off as a work expense. She stresses the importance of keeping records of legitimate work-related expenses.

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AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

ATO beefs up internal processes after scandal

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Original article by Tom McIlroy
The Australian Financial Review – Page: 6 : 11-Jan-18

The Plutus Payroll fraud has prompted the Australian Taxation Office to review and strengthen its internal integrity and fraud controls. The ATO has also revamped its fraud awareness training programs, while senior executives have participated in regular meetings of the Inspector-General of Taxation’s review of fraud control management. The son and daughter of former deputy commissioner Michael Cranston are facing criminal charges over his role in the Plutus fraud, while Cranston himself has been charged with abuse of public office.

CORPORATES
AUSTRALIAN TAXATION OFFICE, PLUTUS PAYROLL AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE INSPECTOR-GENERAL OF TAXATION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS

NAB’s Henry calls for action on forgotten tax system review

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Original article by James Eyers, James Thomson
The Australian Financial Review – Page: 9 : 18-Dec-17

Ken Henry prepared a major report into Australia’s tax system in 2010, when he was secretary of the Treasury under former prime minister Kevin Rudd. Henry is currently chairman of National Australia Bank. When asked by a shareholder at its AGM on 15 December whether he favoured tax reform, he said that there were lots of proposals in his 2010 report that he would like to see adopted, including a reduction in the company tax rate.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BUSINESS COUNCIL OF AUSTRALIA