The ATO has provided an update on its latest focus areas and the compliance projects it is undertaking to reduce corporate tax avoidance.

The ATO has provided an update on its latest focus areas and the compliance projects it is undertaking to reduce corporate tax avoidance. These include:

  • investigating possible manipulation of the thin capitalisation rules, including 27 taxpayers’ asset revaluations totalling $78 billion;

  • looking into arrangements that move intellectual property assets and rights offshore to multinational entities’ related parties;

  • focusing on the treatment of oil and gas industry labour costs associated with high-value asset construction;

  • examining the arm’s length conditions operating in pharmaceutical industry arrangements;

  • identifying tax professionals and advisers who are promoting unacceptable tax planning; and

  • looking at the tax affairs of various major e-commerce players.