Don't use coronavirus JobKeeper subsidy to fund executive bonuses or pretend to be loss-making to claim stimulus, ATO warns

Companies that get COVID-19 support payments such as the JobKeeper wage subsidy while still paying executive bonuses or increasing dividends risk damage to their reputations, the Australian Taxation Office has warned. Key points: ATO second commissioner Jeremy Hirschhorn says companies need to take account of reputational risk in the way they behave Mr Hirschhorn also warned against businesses exploiting Federal Budget measures designed to encourage investment, such as the loss carry-back scheme The warning comes amid concerns stimulus measures could be rorted and that companies receiving JobKeeper payments are still paying executive bonuses "There was nothing explicit in the rules for the stimulus measures that required companies to stop paying executive bonuses or from increasing dividends to shareholders, but there was a quick backlash for those companies seen to be exploiting the spirit of the measures," ATO second commissioner Jeremy Hirschhorn said. Australia's highest-paid civil servant, Australia Post chief executive Christine Holgate, remains eligible for a $277,000 cash reward despite her job and future hanging under a cloud. "Similarly, accessing the loss carry-back to support executive bonuses, increased dividends or to repatriate cash to offshore-related parties is likely to be viewed poorly by the community."