ATO estimates large corporate tax gap – 17 October 2017
On 11 October 2017 the ATO released a new publication called “Tax and Corporate Australia” addressing the tax performance of the top 1,400 large corporate groups (turnover >$250m) for the 2014-15 year. It contains the ATO’s tax gap estimate for the segment, being approx. $2.5 billion, or 5.8% for the year ended 30 June 2015.
The ATO considers the relatively low tax gap estimate reflects a tax system that is operating well. The 5.8% tax gap estimate demonstrates a high degree of voluntary compliance, and compares well globally. The ATO considers that there is a “strong compliance culture” in the large market and acknowledges that the tax affairs and transactions affecting large business are complex, and there can be reasonable differences of opinion.