Annual Compliance Arrangements with Large Corporate Taxpayers
Table 4.1: Key processes for administering ACAs
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- Entering into an ACA 4.3
| Table 4.1: Key processes for administering ACAs Entry Throughout the year Annual review The option to develop a memorandum of understanding between the parties to clarify expectations, processes and timelines for the ACA. ACA taxpayers provide a letter from the Chief Executive Officer or Chief Finance Officer on behalf of the Board confirming good corporate governance processes. Alternatively, the ATO reviews the taxpayer’s governance arrangements. Develop a terms of arrangement document that sets out how the ACA works in practice. ACA taxpayers to openly discuss material risks and tax positions that they are uncertain about. The ATO will review tax risk disclosures made by the taxpayer. The ATO will allocate a senior officer to manage the relationship during the ACA. At the end of the financial year, the ATO and the taxpayer will jointly review the taxpayer’s tax return. The ATO will provide the taxpayer with sign-off on low tax risks and develop mitigation strategies for others. Source ATO. 4.2 To assess the administration of ACAs, the ANAO analysed the electronic case management files for those 24 ACAs current at the time of this audit (July 2014), to determine whether the key processes for administering ACAs had been completed and appropriately documented for each of the three 95 ATO, available from < https://www.ato.gov.au/Business/Large-business/In-detail/Compliance-and- governance/Annual-Compliance-Arrangements/ > accessed 7 June 2014]. 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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