In the 2016-17 Budget, the Government announced that it would increase administrative penalties imposed on companies with global revenue of $1 billion or more who fail to adhere to tax disclosure obligations. This measure forms part of the Government’s Tax Integrity Package, which will strengthen the integrity of Australia’s tax system.
From 1 July 2017, penalties relating to the lodgment of tax documents to the Australian Taxation Office (ATO) will be increased by a factor of 100 (in reference to the maximum penalty for large entities under the existing law). This will raise the maximum penalty from $4,500 to $450,000, which will encourage multinational companies to meet their reporting obligations.
From 1 July 2017, penalties relating to making false and misleading statements to the ATO will be doubled, which is aimed at discouraging multinational companies from being reckless or careless in their tax affairs.