How Large Businesses Avoid Paying Tax On Their Revenue
A common theme in ATO (Australian Taxation Office) messages this year has been that big businesses are generally doing the right thing. And what they are doing- they’re lodging income tax returns accurately and paying the correct amount of tax. However, the thing that Interestingly, corporate tax avoidance is not at all present in their narrative. However, having observed that the issue of corporate tax avoidance back into the media spotlight once again. In this article, we’ll discuss things in two parts. First, let’s talk about inflated deduction claims by individual and businesses. Then, we’ll look at corporate tax avoidance where businesses are using a multitude of things in order to avoid paying tax on their revenue. What are the Types of Tax Gaps? 1.Individual Tax Gap: Recently, senior ATO figures indicated that what they call the individual tax gap. The Australian taxation office reported that there was a “tax gap” of $2.5 billion of over-claimed work-related deductio