Annual Compliance Arrangements with Large Corporate Taxpayers
Evaluating the effectiveness of ACAs
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| Evaluating the effectiveness of ACAs 2.27 The ACA Oversight Committee initiated work into evaluate the effectiveness of ACAs in meeting their objectives. 60 After more than two years, this evaluation is scheduled for consideration in late. While it had been intended to include income tax, GST, excise and PRRT, the evaluation has subsequently been undertaken for income tax ACAs only. 59 Further, the ACA Oversight Committee had not met its charter requirement to report on progress and outcomes of an endorsed work program on a quarterly basis to the Large Market Committee, prior to the Large Market Committee being disbanded in February 2014. 60 Rather than having stated objectives, the key documentation (particularly the Large Business Annual Compliance Arrangements process map) refers to the benefits of ACAs, to both the taxpayer and the ATO. ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 48 at 30 June 2014), the value of risks under review and the tax amount involved ($1 878 million and $512 million respectively in 2013–14) and the value of tax adjustments (around $82 million made in 2013–14). 2.24 The ACA Oversight Committee is also informed about operational matters (such as those ACAs being negotiated or renewed) and key issues and tax risks being addressed. However, it is not regularly informed of the broader outputs or outcomes of ACAs in achieving envisaged benefits. 59 To improve reporting to the Committee and senior ATO executives about key issues and outputs, an ACA register is being developed by the Committee secretariat. The register is designed to be provided to the Committee on a monthly basis including key facts for each ACA such as key dates, tax coverage, and emerging issues. 2.25 External reporting of ACAs has been through the Commissioner of Taxation annual reports 2008–09 to 2011–12. Information about the number of ACAs and value of tax assured by these arrangements was reported. For example, in 2011–12 it was reported that there were ‘18 annual compliance arrangements (ACAs) in place with large businesses, covering income tax, GST, excise and fringe benefits tax with $260 billion in GST and $100 billion in income covered by ACAs’. No information in relation to ACAs was provided in the 2012–13 annual report. 2.26 Overall, management reporting provides BSL executives with useful and timely information about the key issues and outputs associated with ACAs, and external reporting is appropriate to the scale of ACAs. However, there has been only limited progress to date in measuring the effectiveness of ACAs, as discussed below. Download 1.48 Mb. Share with your friends:
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