Springdale Legal’s principal has experience as a Senior Manager in the Australian Tax Office, and therefore knowledge of the inner workings of the ATO!
The basis of ATO Compliance which is dictated to every tax officer is the ‘Compliance Pyramid’. This means that high profile taxpayers can be targeted, with the aim of compliance filtering through all sectors of the community .
The ‘tip off’ line to report tax evasion is also an important part of the ATO strategy.
An interesting article appears on ABC news today, which details the ATO reports that it has received nearly double the amount of referrals from the community about tax evasion compared to the same time last financial year.
“Going on current numbers, we’re on track to receive over 70,000 community referrals before the end of this financial year”, they said.
The ATO will launch a new Tax Integrity Centre to coincide with the new tax year, providing a single point of contact for reporting suspected or known illegal phoenix, tax evasion and black economy activity.
It is important to see a lawyer, as well as an accountant, to ensure your tax strategies do not cross the line from minimisation to avoidance, which can leave you open for person land corporate penalties.