ATO in GST clampdown
The Australian Taxation Office (ATO) has signalled that it will raise an additional $3.3 billion in cash collections as a result of a clampdown on Goods and Services Tax (GST) compliance.
The figure was put forward by ATO second commissioner Bruce Quigley in a speech to the Tax Institute. Quigley said the ATO’s ability to pursue the money had been enhanced by the allocation of $445 million over four years in the May Federal Budget.
He said that of this allocation, $337.5 million would go towards improving GST compliance with the ATO targeting problems of inflated or fraudulent GST refunds, systemic under reporting of GST liabilities, non-lodgement and non-payment.
Quigley said specific focus areas for the ATO would include the investigation of under-reporters before the behaviours potentially escalated into refund fraud, more direct contact with taxpayers who failed to lodge GST returns or pay GST debts, and a focus on ‘hot spots’ such as the property and construction industry sectors.
“This work is expected to net an additional $3.3 billion in cash collections,” he added.
Quigley also indicated that a portion of the Budget allocation would be directed towards clamping down on the cash economy — something that was expected to result in an additional $491.8 million in revenue.
AUTHOR
Mike Taylor
Recommended for you
A former Northern Territory financial adviser has received a seven-year ban from ASIC, having been convicted of supplying dangerous drugs and receiving or possessing the proceeds of their sale.
Both Bain Capital and CC Capital have made revised bids for Insignia Financial after completing a period of due diligence.
The advice industry has reached triple-digit gains for the calendar year to date, with two licensees seeing gains of five during the week.
Targeting market leadership in digital advice, Bravura’s digital solutions are now available to over 6 million superannuation fund members.
