Tax office crackdown on employer super payments
Friday, March 14, 2008/
A tax office campaign to make employers pay super contributions on time has resulted in a dramatic reduction in late payments, chief taxman Michael D’Ascenzo has revealed.
Over the past 18 months the Australian Taxation Office as cracked down on employers that breach strict time limits for making super contributions in behalf of employees, with some business owners being hit with large penalties.
There is now evidence the more pro-active approach has worked, with super contribution collections from employers over the past six months up $43 million, or 63%, on the same period last year, D’Ascenzo said in a speech yesterday.
Employers heard the message and fewer are getting in trouble with the tax office; the number of employer debt cases fell by almost 9000.
D’Ascenzo also used the speech to signal a new target for tax office investigators; executives earning more than $1 million.
The tax office has sought further information from 174 high income earners on their tax arrangements and will take further action if satisfactory responses aren’t received.
Significant resources devoted to checking up on the tax compliance of high income earners have paid dividends, D’Ascenzo said, with net income assessments up from $1 million to $11 million and $8.2 million recovered.