The Federal Government may have backed away from significantly targeting upper income earners with respect to superannuation, but the Australian Taxation Office (ATO) has signaled high net worths will be specifically targeted this financial year.
The ATO has made its intentions clear in its compliance agenda for 2013/14, stating that "the community rightly expects us to ensure wealthy Australians pay their share of tax. We will contact people where their wealth seems at odds with what they are reporting on their income tax returns".
The ATO said it would be undertaking 500 income tax reviews and audits of highly wealthy individuals (those controlling net wealth greater than $30 million) and contacting 750 of those people "to check claims or provide advice".
"Last financial year, we completed 291 income tax reviews and audits on highly wealthy individuals, raising $1.1 billion in liabilities," it said. "We will undertake 1,000 income tax reviews and audits of wealthy Australians (those controlling net wealth between $5 and $30 million) and contact 8,000 to check claims or provide advice."
The ATO said that last financial year, it had completed 386 income tax reviews and audits of wealthy Australians, raising $281 million in liabilities.
