The Australian Taxation Office (ATO) has published a new annual review of the country's 5,000 largest privately owned groups with net wealth of over AUD50 million. The most frequently observed compliance failures include: non-arm's-length arrangements involving family members or related parties; trust distributions; improper loans or payments to shareholders and their associates; 'significant variances, discrepancies and errors' in reporting of income and expenses between tax returns and business activity statements; using tax losses and capital losses incorrectly; reporting property sales on the capital rather than the sales account and lack of record-keeping in relation to carrying forward tax losses...