Sydney, Oct 23: The Australian Taxation Office (ATO) has achieved a record high in tax revenue, securing an additional $6.4 billion from the country’s largest businesses and multinational entities for the 2022-23 financial year.
This significant revenue boost is attributed to the ATO’s proactive compliance measures and persistent efforts to ensure tax compliance among large enterprises.
Chris Jordan, ATO Commissioner, highlighted that this substantial increase in revenue is a direct outcome of the ATO’s continuous vigilance and compliance interventions within the large business sector.
He credited the Tax Avoidance Taskforce for its pivotal role in promoting tax compliance by large businesses.
The Tax Avoidance Taskforce’s primary focus is to scrutinize the tax outcomes of the largest 1,100 businesses and multinational groups, ensuring they pay the correct amount of tax.
Over the years, the task force has played a crucial role in collecting an additional $2 billion on average each year from both public and multinational businesses.
The result for the last financial year is three times higher than the previous annual average.
A significant portion of the $6.4 billion revenue boost is attributed to the ATO’s earlier interventions in the oil and gas sector, which are now yielding positive impacts on tax collections.
The ATO’s success in the Chevron case, which removed over $40 billion in past and future interest deductions for related party finance arrangements, has contributed to this outcome.
Consequently, large businesses in the oil and gas sector are now paying more tax and doing so earlier.
The ATO’s diligent efforts to challenge tax avoidance arrangements and ensure tax compliance by large businesses have resulted in these remarkable outcomes.
The Tax Avoidance Taskforce will continue its work in holding public and multinational companies accountable, ensuring they fulfill their tax obligations.
While recognizing that most large businesses are law-abiding and meet their tax obligations, the ATO remains committed to identifying and pursuing organizations attempting to exploit the system.
Since its establishment in 2016, the Tax Avoidance Taskforce has successfully secured over $27.7 billion in additional tax revenue from multinational enterprises and large public and private businesses up to Aug 31.
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