Large companies: ATO flags tax risk areas for 2007-08

In a recent address on building competitive advantage, the Tax Commissioner said the Tax Office's primary emphasis in the large corporate sector is on supporting voluntary compliance and reducing compliance costs, rather than on revenue collection activities. The Commissioner said the following issues are on the Tax Office radar for 2007-08:

• corporate restructures, mergers and acquisitions
  
  

• financing arrangements including the use of hybrid securities
  
  

• companies whose tax performance is at odds with economic performance
  
  

• transfer pricing issues