Annual Compliance Arrangements with Large Corporate Taxpayers
Figure 1.2 Client experience continuum model
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- ATO arrangements for administering ACAs 1.14
| Figure 1.2 Client experience continuum model Have decided not to comply Don’t want to comply Try to but not always succeed Willing to do the right thing Le vel of interaction Compliance Model Client Experience Continuum Model HIGH TOUCH Limited transparency more effort required to meet tax and super obligations, full force of the law MEDIUM TOUCH Some transparency less effort required to meet tax and super obligations, deter by detection LIGHT TOUCH Considerable transparency significant less effort required to meet tax and super obligations, help to comply NO TOUCH Full transparency minimal effort to meet tax and super obligations, make it easy Source: ATO, 2020 vision. ATO arrangements for administering ACAs 1.14 The ATO’s administration of Australia’s taxation and superannuation systems are centred around three groups 37 and the business and service lines (BSLs) within these groups. ACAs are administered in the Compliance Group, by the BSL responsible for the category of tax involved. 1.15 The ATO has developed a three‐phase process for administering ACAs, which involves entry into the ACA—where the taxpayer’s governance arrangements are considered and a terms of arrangement document developed that sets out how the ACA will work administration throughout the year—where the taxpayer can disclose material tax risks and the ATO will review these disclosures and closure at the end of the financial year—where the ATO and taxpayer jointly review the taxpayer’s tax return. The ATO provides sign‐off for 37 The groups are the Compliance Group, which has responsibility for ensuring maximum levels of taxpayers compliance; People, Systems and Services Group, which provides a range of corporate services across the ATO, including the development and maintenance of the ATO’s information technology systems and the Law Design and Practice Group, which provides corporate legal services. ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 34 low risk issues and develops mitigation strategies for higher risk issues. 38 The renewal of the ACA is also covered during this stage. 1.16 Negotiating and managing ACAs is the responsibility of operational staff within the relevant BSL. The document setting out the agreed terms of the ACA (including the governance arrangements, duration, commitments, disclosures, records, issues registers and dispute resolution mechanisms, is usually signed by the Commissioner of Taxation (the Commissioner) and the entity’s Chief Executive Officer or Chief Financial Officer. Some ACAs establish a steering committee for each tax type (10 cases, while most establish one steering committee to oversee all taxes covered by the ACA (14 cases. There is also a working party for each ACA, comprising senior representatives from the ATO and the taxpayer. 1.17 High‐level management is provided through the ATO’s ACA Oversight Committee, which includes senior executive staff from the BSLs administering ACAs, reporting directly to the respective Deputy Commissioners in the Compliance Group. Download 1.48 Mb. Share with your friends:
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