Revenue loss creation via negative gearing 3 0677 0673 Revenue loss utilisation

Revenue loss creation via negative gearing 3 0677

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Revenue loss creation via negative gearing 3 0.677 0.673 Revenue loss utilisation via intra group transfers (Issue 1) Revenue loss creation via negative gearing Trust distribution – capital distributions in non-cash (to the HWI) 4 0.712 0.707 Revenue loss utilisation via intra group transfers (Issue 1) Revenue loss creation via negative gearing Trust distribution – capital distributions in non-cash (to the HWI) Use of shareholder loan account – repayments by HWI 5 0.732 0.726 Revenue loss utilisation via intra group transfers (Issue 1) Revenue loss creation via negative gearing Trust distribution – capital distributions in non-cash (to the HWI) Use of shareholder loan account – repayments by HWI Trust distribution – capital distributions in cash (to the HWI family member) It is difficult to know where to draw the line in our interpretations since often the number of cases is low, both in the number of issues where dollars at risk are recorded and the number of HWIs who are assessed as being a high risk. However the sparsity observed in this data set is very characteristic of rare events data. If the
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222 Taxing Democracy notion of an evolutionary ecology of tax planning with the occurrence of stable and new niches is apt, then the prediction of a small number of rare events is important to keep abreast of new strategies. The only issue that is consistently listed in Table 10.6 and 10.7 and the earlier tables where risk ratings were used is ‘utilisation of revenue losses via intra group transfers’. This is actually the top predictor for the total number of high risk issues (see Table 10.7). Since this is also recurrently predictive in the subjective analyses, ‘utilisation of revenue losses via intra group transfers’ was considered a definite contender for being a red flag issue. Of the 207 issues, it is also the one that most commonly has a high risk rating (see Table 10.1). This makes it a decidedly useful red flag for our final models. Choosing Between Subjective and Dollar Risk In practice it appears that the two types of analyses described, those using the estimates of risk rating and those using the dollars at risk estimates, are capturing different aspects of the risk prediction process. Focusing on issues from the preceding tables, we examined the relationship between risk rating and dollar ratings. Although there is some evidence that the higher risks had higher dollars associated with them, it was by no means universal nor unambiguous as many issues had zero or low dollars associated with high risk and vice versa. Thus, we need to interpret the dollars knowing that low dollars at risk do not necessarily signify low risk in the view of the assessor. Dollars at risk for ‘revenue loss creation via negative gearing’ is also a good example of the disjuncture: Assessors rarely considered the issue a high risk but unusually large dollar amounts recorded for this heading was predictive of high risk.
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  • Fall '16
  • tax authority, Australian Taxation Office, Tax Office, Compliance Model

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