Annual Compliance Arrangements with Large Corporate Taxpayers
Figure 2.1: Structure of the Compliance Group, June 2014
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| Figure 2.1: Structure of the Compliance Group, June 2014 Source: ANAO from ATO documentation. 2.5 From August 2013, the structure of the work managed by the Compliance Group changed from BSL responsibilities largely based on entities turnover, to greater alignment with the structures and legal frameworks that exist in the market sectors. The new structure recognises that different entities have different governance and reporting requirements, and that the ATO’s compliance approaches could be better tailored to their specific circumstances. 49 To this end, the ATO has created a matrix structure to manage tax compliance, based on the type of tax and the market segment, for example the ITX BSL manages all entities indirect and excise taxes PG&I BSL manages income tax and PRRT for public groups and internationals and PGH BSL manages taxes including income tax) for this market segment and FBT for all segments. 2.6 The restructure has also changed the number of entities managed by the three BSLs. PG&I managed approximately 31 000 entities as at June 2014, including approximately 1100 large businesses that had previously been the 49 Commissioner of Taxation, Reinventing the ATO’, speech delivered at the Tax Institute of Australia 29 th National Convention, Hobart, 27 March 2014. Management Arrangements ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 43 sole responsibility of the (then) Large Business and International BSL, the smaller public entities previously managed in the Small and Medium Enterprises BSL and small enterprises in the Micro Enterprises and Individuals BSL. PGH now manages those large private entities previously in the Large Business and International BSL and is responsible for the administration of FBT which previously fell under the Small and Medium Enterprises BSL. The ITX BSL continues to manage all indirect taxes across all taxpayers. 2.7 Irrespective of the new ATO structure, as previously noted ACAs have always been administered by different BSLs depending on the type of tax, particularly income tax, GST and FBT. The ATO has recognised (and the recent internal reviews have reinforced) that administering ACAs across three BSLs has generated inconsistency in the negotiation, operation and sign‐off of the arrangements. 50 While some steps have been taken to improve the consistency of administration, such as the establishment of the ACA Oversight Committee in June 2012, alack of coordination across BSLs was still being identified as an issue by the ATO in June 2014. Download 1.48 Mb. Share with your friends:
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