The Federal Government has put tax cheats ‘on notice’ as it attempts to rein in the deficit caused largely by the COVID pandemic.
Pointing to new ATO figures showing an estimated annual shortfall of $33.4 billion between tax owed and tax paid, the Albanese Government has announced that it “is investing in the capabilities of our tax regulators to increase receipts by around $5.7 billion over the forward estimates”.
The Government is providing a clear signal that tax avoidance will not be tolerated, and its “investment” in the tax regulators over the forward estimates includes:
- $1.1 billion to increase and extend funding for the Tax Avoidance Taskforce, which focuses on multinational, large business, and high-wealth tax avoidance;
- $242.9 million to extend the Shadow Economy Program for a further three years, which helps to stop dishonest and criminal activities outside of the tax system;
- $80.3 million to extend the Personal Income Taxation Compliance Program for a further two years, to support individuals to pay the right amount of tax; and
- $20.8 million for the Tax Practitioners Board (‘TPB’) to increase compliance investigations on high-risk practitioners.
The majority of small business owners do the right thing – lodge on time, pay the correct tax calculated and manage their obligations in a timely manner.
If you are doing (and continue to do) the right thing, then there is nothing to fear with these new initiatives by the Government and the heightened levels of activity by the ATO.
Have a great day!
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