Annual Compliance Arrangements with Large Corporate Taxpayers
Developing a memorandum of understanding
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- Entering into an ACA 4.3
| Developing a memorandum of understanding 4.4 A memorandum of understanding (MoU) maybe entered between the taxpayer and the ATO to gain in principle agreement to develop and implement the ACA in the context of each party’s roles and responsibilities. Entering into a MoU is optional, however, ATO guidance states that a MoU may strengthen the collaboration between the taxpayer and the ATO. 4.5 The MoU is normally a short document and is prepared once the taxpayer and ATO have agreed in principle to enter into an ACA. This is before the development of the ACA terms of arrangement. In some cases, for example where the taxpayer and the ATO are already working together in an open and transparent way, a MoU is not necessary. Some taxpayers, however, prefer to sign a MoU as it demonstrates an overt commitment to working in an open and transparent way. The ATO advised that a number of corporate tax managers considered that the MoU helped them to gain commitment to the ACA from within their own organisations. 4.6 Since the introduction of ACAs, seven MoUs have been entered into by the ATO and taxpayers. The seven most recent ACAs have not included a MoU, indicating a move away from this step in the process as familiarity with these arrangements increases across the large taxpayer market. 96 An ACA has a schedule for each tax that is covered by the ACA. A multi-tax ACA will, for example, have four tax schedules if there are four taxes covered by the ACA. ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 72 phases entry throughout the year and the annual review. The ANAO also held discussions with all current and previous ACA holders and ATO officers involved in the administration of 30 of the 40 tax schedules associated with the 24 ACAs. 96 Entering into an ACA 4.3 As discussed previously, ACAs are targeted at those taxpayers categorised by the RDF as key taxpayers. While the taxpayer’s overall RDF rating is the starting point for assessing suitability for an ACA, the entry process involves the three processes outlined in Table 4.1. Download 1.48 Mb. Share with your friends:
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