Annual Compliance Arrangements with Large Corporate Taxpayers
Administering ACAs throughout the year
Download 1.48 Mb. View original pdf
|
| Administering ACAs throughout the year 4.28 ACAs aim to improve practical certainty for taxpayers by considering tax risks in real time. As a consequence, the ATO and the taxpayer have ongoing contact throughout the year. The nature of this contact is summarised in Table 4.3. 107 The rulings process refers to the advice developed by the ATO setting out their interpretation of the laws administered by the Commissioner of Taxation. This advice is binding on the ATO. ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 80 ACA. In particular, the ATO advised there were two instances where disagreement between the ATO and the taxpayer about whether legacy issues were covered by the ACA had caused uncertainty about the annual sign‐off. The ATO advised this had led to tensions between the ATO and ACA holder. ACA holders also noted that resolving legacy issues before entering into an ACA assisted in avoiding a strained relationship between the parties. 4.26 The ATO’s 2012 Review of Annual Compliance Arrangements noted that it is important to clearly define and articulate legacy issues. The review found that it was important for compliance teams to obtain sufficient information at the time of entering into an ACA for such issues to be considered a disclosure under an ACA. 4.27 As at May 2014, the ATO had not developed any written guidance as to the treatment or transition of legacy issues into an ACA. There was also no specific section on legacy issues in the generic ToA document or the ToAs that had been signed with taxpayers. Enhancing guidance about legacy issues would support the consistent administration of ACAs and provide greater clarity to taxpayers considering entering into an ACA. The extent of legacy issues affecting ACAs also highlights the importance of the ATO reaching decisions on contentious issues in a timely way through its rulings processes. 107 Download 1.48 Mb. Share with your friends:
|