Annual Compliance Arrangements with Large Corporate Taxpayers
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- 639 1 , 493 1 , 405 Source: ATO. 3.14
- Table 3.2: Number of key taxpayers by main taxes covered by ACAs Number of key taxpayers 1 2013–14
| 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. Positioning of ACAs within the ATO’s Compliance Framework ANAO Report No 2014–15 Annual Compliance Arrangements with Large Corporate Taxpayers 61 3.16 Consistent with the greater complexity and potential benefit from real‐time consideration of contentious issues, there is a higher proportion of key taxpayers with ACAs for income tax than for GST and excise. However, despite relatively fewer disputes in relation to GST (most issues relate to errors, there were more ACA holders and key taxpayers for GST than for income tax (12.1 percent) ACA holders from 140 key taxpayers for GST, compared to 12 (18.8 percent) ACAs from 64 key taxpayers for income tax. 3.17 As discussed previously, the categorisation of key taxpayer is primarily dependent on the positioning of the risk consequence axis. This is because virtually all taxpayers large enough to be positioned above the consequence axis are classified as key (only three were higher risk in 2013–14), and those below the axis are classified as medium or lower risk. In 2013–14, the PG&I moderation process (the Moderation Panel) elevated the higher consequence criteria to make allowance for the additional workload and resource requirements anticipated to flow from the increased population covered by the PG&I BSL compared to the previous LB&I BSL. 84 The number of key large corporate taxpayers for income tax consequently reduced from 87 into in 2013–14. The moderation process for ITX resulted in few changes in 2013‒14 but the BSL advised that it is likely to also consider elevating the higher consequence criteria in the 2014–15 RDF to reduce the number of key taxpayers for GST. 3.18 There were also eight ACAs in place for FBT as at July 2014. FBT ACAs are not normally offered in isolation and are mainly incidental to ACAs as they are primarily for income tax or GST. 85 In addition, one taxpayer had entered into an ACA for PRRT as well as income tax, notwithstanding that PRRT is a complex tax that can often require rulings. Download 1.48 Mb. Share with your friends:
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