ATO Publishes Data On Big Business Tax Gap
Wednesday, October 11, 2017
The Australian Taxation Office has estimated that the tax gap for the large corporate groups sector is AUD2.5bn (USD1.9bn) or 5.8 percent.
The tax gap is an estimate of the difference between the amount of tax collected and the amount that would have been collected if every taxpayer was fully compliant. The figure for the large market is calculated after all tax is paid voluntarily and the ATO has conducted compliance activities. It is based on data from 2014-15.
The ATO said that at 5.8 percent, the size of the large corporate groups gap "reflects a tax system that is operating well, demonstrates a high degree of voluntary compliance, and compares favorably with other international jurisdictions."
Large corporate groups contributed AUD41bn in corporate tax in 2014-15.
The definition of a large corporate group is a group with gross income over AUD250m in a given income year.