Tax Office Compliance Program

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The Tax Office has released its compliance activities for 2009/10. The key activities for the different taxpayer segments are discussed below.

Individuals

The key compliance activities the Tax Office will focus on include:

• Capital gains from the sale of shares and properties;
• Deductions for investment products; and
• Work-related expense claims - in particular claims made by truck drivers, sales and marketing managers, sales representatives and electricians.

Micro enterprises

Micro enterprises are businesses with an annual turnover of less than $2 million and self-managed superannuation funds (SMSF’s).

Key compliance issues include:

• GST and CGT compliance risks associated with property transactions;
• Losses on the disposal of shares;
• Claims for GST refunds and the research and development tax offset, which will be subject to credibility checks;
• Correct disclosure of distributions from trusts and partnerships in beneficiaries’ tax returns; and
• Early warning to participants of the potential tax issues involved in tax exploitation schemes.

Small to medium enterprises

Small-to-medium enterprises are businesses with an annual turnover of between $2 million and $250 million. This segment includes highly wealthy people, who, with their associates, control $30 million or more in net wealth.

Key focus areas include:

• Private company loans and payments to shareholders (or associates) to ensure compliance with the taxation laws;
• Correct FBT treatment of motor vehicles;
• Superannuation guarantee issues such as late payments and incorrect calculations;
• CGT, in particular to ensure capital losses are not offset against income;
• Claims for GST refunds which will be subject to credibility checks;
• GST and property transactions; and
• Remuneration of highly paid company directors and executives.

Self-managed superannuation funds

Key compliance activities include:

• Adherence to superannuation regulations
• Satisfaction of the definition of an 'Australian superannuation fund'; and
• Illegal early access to superannuation.

International dealings

International dealings of taxpayers will be a focus of the Tax Office. Data matching programs will be carried out to identify unreported foreign income such as bank interest and foreign dividends n

If you have queries regarding these matters or any other matters, please contact Platinum Accounting & Taxation on:

National: 1300 794 940
Local Call: 03 9746 6479
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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