The ATO and You

“Most wealthy Australians are not experts in tax law… but, like all taxpayers, they are responsible for what they report in their tax returns, irrespective of who prepares the return and the advice they get. They need to be confident about the quality of advice and the tax positions adopted for themselves and their business groups.” Michael D’Ascenzo, Commissioner of Taxation.

The Australian Taxation Office (ATO) is significantly increasing its ability to monitor the tax affairs of wealthy people and their associated entities (Australian residents who control $30m or more in net wealth). In addition to the special attention being given to the tax affairs of wealthy people the ATO has also been checking the compliance of public and private company executives with remuneration in excess of $1million.

For more than 10 years the ATO has operated a dedicated taskforce to monitor and manage compliance by Australia’s wealthiest people. Over the next few years the number of people engaged by the ATO to do this will almost treble. When wealthy individuals first come under scrutiny, they will be asked to respond to a detailed High Wealth Questionnaire by the ATO.

Are you ATO ready?

In considering whether you are ATO ready and maximising your planning opportunities, here are some critical questions:

• The ATO will assess where your activities are placed in an overall tax compliance/risk spectrum. Where do you sit in the tax risk spectrum?
• What elements of your tax affairs are low risk or high risk?
• What specifically about your tax affairs might draw to the attention of the ATO?
• Have there been any significant asset disposals?
• Are there any assets or activities located overseas?
• Have you received any media coverage in financial or non-financial press, radio or TV?
• Are your assets/investments predominantly in listed public entities (low risk) or do they have significant assets/investments in private entities (high risk)?

• We work with you, to ensure your tax affairs are in order before you fall under the scrutiny of the ATO as part of their High Net Wealth monitoring program.
• Assist with your response if you do receive the High Wealth Questionnaire from the ATO.
• If required, manage the ATO’s audit of your tax affairs and help you achieve the best settlement outcome.

• PwC is a member of the High Net Wealth Individual Consultancy Group formed by the Tax Commissioner Michael D’Ascenzo. This Group has been formed by the Tax Commissioner to provide insights into the ATO’s approach to wealthy individuals.
• By involving PwC with your tax affairs will immediately reduce your risk profile with the ATO.
• Our team has broad, deep technical skills to remedy your tax situation and give the ATO comfort that your tax compliance needs are being met at the highest level.