Fed: ATO to target big business and rich on tax compliance

00-00-0000
Fed: ATO to target big business and rich on tax compliance

CANBERRA, Dec 11 AAP - The Australian Taxation Office (ATO) said today it would continueto focus its energies on big business and wealthy people to ensure they paid their shareof tax.

The ATO unveiled its compliance program for 2002/03, identifying the areas it consideredmost likely to avoid paying tax.

Tax Commissioner Michael Carmody said the ATO did not have the resources to collectevery tax dollar payable.

"Clearly, we have to make choices about how best to direct our activities to addressareas of greatest risk," he said in a statement.

"While we manage a diverse range of risks across the tax system, a key priority remainsbig business and high wealth individuals."

Extensive audits on the big end of town netted an extra $2.64 billion in tax over thepast five years, Mr Carmody said.

One in 10 businesses will be audited in 2002/03, while more than 135,000 people willbe asked about their tax deductions, he said.

"We will boost our GST compliance staff by around 350 and our serious investigationsgroup to 300," he said.

More than 25,000 small and medium businesses would be contacted through field visitsand written requests for more information.

The ATO would also make 20,000 field visits to crack down on the cash economy.

It also said it was fighting the use of tax havens by analysing intelligence and workingwith the OECD and law enforcement agencies.

AAP jph/kjp/drp/sb

KEYWORD: TAX ATO