Table 3.1: RDF ratings of risk for large corporate taxpayers, 2011–12 to 2013–14 Classification of taxpayer risk 2011–12 2012–13 2013–14 Higher risk 14 7 3 Key taxpayers 135 163 158 Medium risk 590 321 319 Lower risk 900 1 , 002 925 Total 1 , 639 1 , 493 1 , 405 Source: ATO. 3.14 There have only been an additional seven ACAs entered into since the RDF was first used to identify key taxpayers as part of the ACA compliance strategy. Further, six of these taxpayers 82 would not be categorised as key under the current risk assessment arrangements. 83 RDF classification by type of taxi b The ANAO analysed the 2013–14 RDF ratings to determine the number of key taxpayers by tax type and the percentage covered by ACAs (Table 3.2). Of these taxes, income taxis the most complex and likely to be the most contentious, GST is essentially a pass through tax, with less risk and complexity, and entities are likely to comply with excise obligations as the penalties for noncompliance include loss of licence. Table 3.2: Number of key taxpayers by main taxes covered by ACAs Number of key taxpayers 1 2013–14 Current ACAs as at July 2014 Current ACAs as ab bpercentage of key taxpayers Income tax 64 12 18.8 GST 140 17 12.1 Excise 28 2 7.1 Source ATO. Note 1: Taxpayers are categorised under the RDF for each tax they are subject to, and some taxpayers hold an ACA for multiple taxes. Consequently, summing the number of key taxpayers or the number of ACA holders by tax type leads to double counting and to totals in excess of those reported in Table 3.1. 82 These include the five state government departments and one private sector company. 83 These six taxpayers entered into ACAs prior to the introduction of the current risk assessment arrangements, and would now not berated key because they are not sufficiently large in terms of the likely consequences of noncompliance.
ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 60
