Does the ATO think
your client is risky?
Adrian Abbott
Senior Consultant –
Tax Advisory
Crowe Horwath
Michael Cranston
Deputy Commissioner
Australian Taxation Office
Improving the tax and super experience
Every year counts
Improving transparency
Being upfront – online resource
Previously
NOW
Tax compliance for small-to-medium
enterprises and wealthy individuals


Relevant and up-to-date information, including ‘Recent developments’
Guidance on the kinds of issues that draw the ATO’s attention
Find out more at www.ato.gov.au/privategroups
Improving transparency
Understanding the Risk Differentiation Framework
Risk Tolerance Threshold
Improving transparency
What attracts the ATO’s attention

Tax or economic performance not comparable to similar businesses

Lack of transparency in tax affairs

Large, one-off or unusual transactions, including transfer or shifting of wealth

History of aggressive tax planning

Choosing not to comply or regularly taking controversial
interpretations of the law

Lifestyle not supported by after-tax income

Treating private assets as business assets

Poor governance and risk-management systems
Improving transparency
What attracts the ATO’s attention – current issues

Retirement planning arrangements involving SMSF’s

Capital verses revenue distinction

Research and development tax offsets

Wealth extraction through private companies and trusts

Pre- and post-CGT assets on transition or
exit from a business

International tax issues including residency,
profit shifting and asset disposals by non-residents
Recent developments
Corporate Tax Transparency
Breakdown of the 321 companies subject to transparency reporting for 2013-14
Recent developments
High wealth individuals

Australian-resident individuals who,
together with their associates,
effectively control an estimated
net wealth of $30 million or more
Recent developments:

Confirming high wealth individuals
Find out more at www.ato.gov.au/how-we-identify-wealthy-individuals
Tailoring engagement
Income Tax
Assurance
Notification
Tailoring engagement
Income Tax Profile
Tailoring engagement
Early engagement
We’re having one on one conversations with our largest
private groups and market leaders to establish ongoing
working relationships. Our conversations are based on
real time issues, tax performances and Income Tax
Profiles.
We’re also working towards providing whole-of-client experience service with
visits focused on both income and indirect taxes.
Tailoring engagement
Early engagement for advice
For clients seeking early engagement for advice on
complex transactions we have provided a ‘single entry point’
to ensure the right experts and decision makers provide
the certainty needed.
You can request a call back or advice request by visiting
www.ato.gov.au and searching early engagement for advice.
Tailoring engagement
Tax governance – online guide
 Practical benefits for business
 Importance of governance
 Key principles of effective tax governance
 Working with us – client engagement
 Key governance steps and processes
 Tailored guidance for business events and complexity
Find out more at www.ato.gov.au/taxgovernance
Questions?
© June 2016 Crowe Horwath and Australian Taxation Office, Commonwealth of Australia
Disclaimer: The material and opinions in this paper are those of the author and not those of The Tax Institute. The Tax
Institute did not review the contents of this presentation and does not have any view as to its accuracy. The material and
opinions in the paper should not be used or treated as professional advice and readers should rely on their own enquiries
in making any decisions concerning their own interests.