Annual Compliance Arrangements with Large Corporate Taxpayers
Table 3.5: Compliance activities of key large corporate taxpayers
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- Future positioning of ACAs 3.31
| Table 3.5: Compliance activities of key large corporate taxpayers conducted in 2012–13 Income tax GST and excise Total number of key taxpayers 88 132 Annual compliance arrangement 8 14 Pre-lodgment compliance review 55 n/a Reportable tax position 65 n/a Audit 20 22 Comprehensive risk review 30 1 Other risk review 23 80 Key taxpayer review (GST) 3 n/a 0 Client Relationship Manager or tailored advice compliance activities n/a 21 No compliance activity 0 0 Source ATO. Notes 1 Key taxpayers can be subject to more than one compliance activity in a year. 2 Other risk review includes governance workshops, risk workshops and reviews of one or more specific risks identified. 3 Key taxpayer reviews were not introduced until 2013–14. Future positioning of ACAs 3.31 As discussed in Chapter 2, a review by the Inspector‐General of Taxation in 2012, and a number of recent ATO internal reviews, have found that the low take‐up of ACAs was largely due to concerns about their prescriptive nature, high cost (particularly in the initial years) and the availability of more suitable alternative assurance approaches. Similarly, potentially suitable taxpayers advised the ANAO that the main reason for not entering into an ACA was the relatively high cost, particularly at the entry phase. They perceived other compliance activities to have similar benefits but lower administrative demands. 92 FBT was not included as the RDF is not used on the population. PRRT was not included due to the small population size. ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 68 3.32 The low take‐up of ACAs has meant they have not been the centrepiece of cooperative collaboration with large corporate taxpayers as envisaged when introduced. Going forward, the ATO will have to decide whether ACAs are to continue to be positioned in this way, or rather become just apart of the spectrum of compliance approaches. Of prime importance, the ATO will need to clarify the intent of ACAs and how they can be best positioned within the compliance framework for large corporate taxpayers. 3.33 To date, the ATO has not clarified whether to target ACAs to those taxpayers whose compliance behaviours can be improved or to reward those with stronger records of disclosure and compliance. It has also not clarified how to refine ACAs overtime for taxpayers demonstrating a strong record of disclosure and compliance over a number of years. In the latter scenario, ACAs could be more clearly positioned with other compliance approaches to provide a more systematic and coordinated compliance framework for large corporate taxpayers. 3.34 The ATO is currently considering the nature and positioning of ACAs in light of further emphasis on real‐time compliance work as part of the 2020 vision for the ATO. Through this strategy, real‐time pre‐lodgment approaches are to become central for high consequence (higher risk and key taxpayers as categorised in the RDF) taxpayers, as the ATO reduces its focus on traditional post lodgment audits and reviews. ACAs are well placed to beat the forefront of such a strategy. 93 Download 1.48 Mb. Share with your friends:
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