“Rates of corporate tax compliance in Australia continue to set a very high bar for the rest of the world,” according to Australian Taxation Office (ATO) commissioner Chris Jordan.
 
Commissioner Jordan, who was speaking before the Senate Economics Legislation Committee, said that since his tenure began in 2013, there had been “a significant shift in the attitude and behaviour of large corporate taxpayers” towards paying tax.
 
During the 2022-23 financial year, the ATO’s net tax collection, of $576 billion, included “an additional $6.4 billion in tax revenue for the Australian community from large public corporations and multinationals” due, in part, to ATO compliance interventions.
 
Commissioner Jordan also noted that small and medium businesses made a significant contribution to Australia’s tax base – and that the ‘tax gap’ between what they owed and what they paid had been shrinking.
 
“Over the past few years, the overall tax gap estimates have declined gradually, falling from 8.1% in 2015-16 to 7% in 2020-21. This year, of the 15 income-based and transaction-based tax gap estimates we produce, we saw an improvement across nine of the estimates,” he said.
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