Australia’s top 1000 companies will now have to report any tax issues that the Australian Tax Office (ATO) could see as “contestable”.
According to documents obtained by The Australian, big businesses will need to reveal their reportable tax positions “where it would be concluded in the circumstances … that what is argued for is about as likely to be correct as incorrect”.
False claims or failure to lodge on time and the company could be handed fines of more than $500,000.
The crackdown by the ATO will act as a pilot program to see if the policy could be applied to smaller companies and individual taxpayers.
This reportable tax-position system has been introduced to a handful of top companies in the past but this move by the ATO is the most aggressive shift away from self-assessment in recent times.
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