Too many businesses roll the dice on tax debt: Jordan
Profitable companies that choose to relegate their tax and super obligations will be a focus of the ATO’s crackdown on collectable debt, Commissioner says.
.
Too many businesses “roll the dice” on tax liabilities and treat them like a free loan, ATO Commissioner Chris Jordan says.
He said small business owed more than its share of collectable debt and a rising number of profitable businesses with the capacity to pay were choosing not to.
Speaking at the Tax Institute Summit in Melbourne this morning with six months left of his tenure, Mr Jordan was “unapologetic” about the ATO’s tougher stance on collectable debt and called upon tax professionals to help.
“Most collectable debt is self-assessed. It includes GST a business has collected and received credits for but hasn’t remitted. It includes unpaid pay-as-you go withholding and superannuation guarantee charge that has a direct impact on employees.”
“Small businesses continue to be over-represented in our debt book, owing over $33 billion of the $50.2 billion of collectable debt – $23 billion of that is unpaid business activity statement debt.”
“There are a growing number of profitable businesses who have the capacity to pay their bills but are choosing not to. Businesses appear to be deprioritising payment of tax and super.”
“This needs to stop.”
“We are hearing more and more from tax professionals that some businesses are rolling the dice, treating ATO liabilities like a free loan.”
“This is not acceptable.”
“I am calling on the tax profession for support. You can reinforce to your clients they are only the temporary custodians of GST, pay-as-you-go withholding and super guarantee – it’s not theirs.”
He said another focus in his final six months was deliberate fraud, “which is nothing more than theft from the community” and the integrity of the tax system in the light of “recent events”.
“In response to increasing fraud attempts, we are embedding fraud prevention methods into our systems and increasing our detection capabilities,” he said.
“We have bolstered the number of our people focused squarely on tackling fraud attempts. We have established the Fraud and Criminal Behaviours Group with 500 dedicated staff on the case.”
“Integrity is also front and centre for us. I welcome and support any actions that strengthen the integrity of the tax system. Particularly further review and consideration of current limitations within tax secrecy laws and our investigative powers.”
“Integrity matters and the public’s desire for integrity in the tax profession is likely to only increase. Recent events are a reminder of the important and trusted role all advisers have and the important role we all play in building trust and confidence in the system.”
Philip King
06 September 2023
accountantsdaily.com.au
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
October - December 2023 archive
- Working after pension age
- Does the NALI/E punishment fit the crime?
- EPOA crucial for SMSFs, says professional adviser
- Economic and market outlook for 2024: Global summary
- Five investing tips for beginners
- Setting up the next generations of retirees
- A 2023 Advent Calendar for our clients
- Most Expensive Wars In History
- ATO takes hard line on in-house asset rules
- How to budget using the 50/30/20 method
- SMSFA says proposed super legislation will hit farmers, small businesses the most
- Investment and economic outlook, October 2023
- The benefits and risks of collectable super assets
- Teaching children about the value of money
- Most powerful countries throughout time.
- Retirement is not just about dollars
- Unfair Terms in a Standard Form Contract
- Too many businesses roll the dice on tax debt: Jordan
- Revised NALE rules ‘miss chance to clarify SMSF bugbear
- 6 simple rules will ensure a deed can be executed in all states
- Our investment and economic outlook, September 2023
- The benefits and risks of collectable super assets
- High deposit rates, but the case for equities is strong
- Most powerful LEADERS of All Time