Annual Compliance Arrangements with Large Corporate Taxpayers

ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers
44 ensuring that ACAs are an integral part of the compliance strategy for the large market.
2.10 The Committee’s terms of reference required it to focus initially on the
35 taxpayers that had been offered an ACA into assess the take up rate and appropriate tailoring of ACAs; and to evaluate the effectiveness of
ACAs. Essentially, the Committee was to develop a suite of administrative measures for ACAs, including developing a governance framework, strategy and effectiveness measures.
Operation of the ACA Oversight Committee
2.11 The ACA Oversight Committee primarily operates through its monthly meetings. As at 30 June 2014, the Committee had met on 25 occasions. The
ANAO reviewed the minutes of the meetings held from June 2012 to May 2014. The minutes reflect discussions on key issues relating to the administration of
ACAs, asset out in its charter, and a rolling list of action items. However, the minutes also reveal that several of the key items of work relating to the management of ACAs and the role of the Committee had either been substantially delayed or not been completed. Specifically, the work program for the Committee, originally due by July 2012, was presented to the Committee on 26 June 2014; revised large business ACA process map, originally due by October 2013, had similarly been delayed due to competing work priorities, but discussed at the 29 May 2014 meeting where it was decided it would beheld over pending the outcome of further reviews and performance framework and effectiveness measures project for ACAs, commenced in November 2012, and was scheduled for completion in late.
2.12 More generally, the meeting minutes indicate that the Committee was aware of many issues concerning the administration of ACAs but was taking sometime to implement remedies, such as developing an overarching strategy for ACAs, and refining policies and supporting procedures for these arrangements.
52 The large business ACA process map explains the key features of ACAs.

ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers
44 ensuring that ACAs are an integral part of the compliance strategy for the large market.
2.10 The Committee’s terms of reference required it to focus initially on the
35 taxpayers that had been offered an ACA into assess the take up rate and appropriate tailoring of ACAs; and to evaluate the effectiveness of
ACAs. Essentially, the Committee was to develop a suite of administrative measures for ACAs, including developing a governance framework, strategy and effectiveness measures.
Operation of the ACA Oversight Committee
2.11 The ACA Oversight Committee primarily operates through its monthly meetings. As at 30 June 2014, the Committee had met on 25 occasions. The
ANAO reviewed the minutes of the meetings held from June 2012 to May 2014. The minutes reflect discussions on key issues relating to the administration of
ACAs, asset out in its charter, and a rolling list of action items. However, the minutes also reveal that several of the key items of work relating to the management of ACAs and the role of the Committee had either been substantially delayed or not been completed. Specifically, the work program for the Committee, originally due by July 2012, was presented to the Committee on 26 June 2014; revised large business ACA process map, originally due by October 2013, had similarly been delayed due to competing work priorities, but discussed at the 29 May 2014 meeting where it was decided it would beheld over pending the outcome of further reviews and performance framework and effectiveness measures project for ACAs, commenced in November 2012, and was scheduled for completion in late.
2.12 More generally, the meeting minutes indicate that the Committee was aware of many issues concerning the administration of ACAs but was taking sometime to implement remedies, such as developing an overarching strategy for ACAs, and refining policies and supporting procedures for these arrangements.
52 The large business ACA process map explains the key features of ACAs. Management Arrangements
ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers
45
2.13 While some common aspects of ACAs have been developed through the Committee, in practice BSLs have established their own arrangements for managing ACAs. At a high level, the processes for negotiating an ACA are similar in each BSL (for example, the terms and conditions of the arrangements, and governance assurance letters, but key components of the
ACAs differ between the BSLs and often between teams within a BSL. As discussed in Chapter 4, differences include the management of issues registers, end of year reviews, and sign‐off of the annual tax return. The arrangements are designed to allow a degree of flexibility to accommodate the different payment schedules and complexities associated with the various taxes subject to an ACA. However, the terms of reference for the Committee acknowledge the benefits of more consistency in processes and improved knowledge and information exchange across BSLs.
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