The Australian Taxation Office (ATO) released its first tax transparency report, outlining for the 2013-14 year, the tax information published by the ATO covering income tax of certain corporate taxpayers with total income of AUS $100 million or more.
Historically, the ATO’s large market analysis has focussed on annual turnover of $250 million and above. An annual turnover of $5 billion and above was viewed by the ATO as a cut-off for higher consequence taxpayers. As such, the ATO’s data-specific commentary focuses on breakdowns by the three income segments: (1) $100 million to $250 million, (2) $250 million to $5 billion, and (3) $5 billion and above.
Detailed sector-specific information is not available from the dataset itself. However, ATO’s data-specific commentary provides some high-level statistics, based on five sectors: (1) banking and finance, (2) manufacturing, (3) insurance and superannuation, (4) energy and resources, and (5) sales and services.
From the accompanying Tax Commissioner’s Statement, there appears to be a strong inference that the ATO views some foreign-owned entities as “tax aggressive.” It also has been noted that there appears to be a significant proportion of such entities in the financial services sectors not paying any tax in Australia in the 2013-14 year (compared to the Australian public entities in those sectors). On the other hand, a significantly lower proportion were nil tax-paying in the manufacturing sector. Given the recent enactment of the Multinational Anti-Avoidance Law and transfer pricing developments, it is believed that the ATO will be focusing on foreign owned entities.
Read a December 2015 report [PDF 72 KB] prepared by the KPMG member firm in Australia: On a page… First Tax Transparency Report Released
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