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
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