Record keeping and tax management in focus for ‘Next 5,000’ groups
The focus areas of the ‘Next 5,000’ program will be effective record keeping and tax management procedures.
The Next 5,000 program is funded by the Tax Avoidance Taskforce and is specifically aimed at Australian resident individuals who control wealth of more than $50m, together with associates. However, this program doesn’t include the Top 500 private groups which are subject to a separate ATO program.
ATO reviews have found that even sophisticated groups sometimes fail to comply with record-keeping obligations and appropriate tax management procedures, such as when related parties are dealing with each other.
The ATO plans to continue undertaking streamline assurance reviews for groups with complex structures, and risk reviews for the remaining population.
The Next 5,000 program findings report can assist advisors to understand the key issues the ATO is looking at and how clients can avoid these issues. For example, some of the key priority areas from last year include:
Groups that are experiencing rapid growth
Cross-border transactions
Arrangements involving intra-group domestic transfers of wealth
Wealth extraction by use of private equity funds
Succession planning.
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