The Australian National Audit Office has undertaken an independent performance audit in the ATO titled Annual Compliance Arrangements (ACAs) with Large Corporate Taxpayers. It has now released its ANAO Report No 5 2014-15 outlining the results of the audit.
ACAs were introduced in 2008 in response to feedback from large corporate taxpayers that they were looking for a “no surprises” approach in relation to their tax positions. The ANAO said notwithstanding the positive experiences of participating taxpayers, take‐up of ACAs has been low.
The ANAO report found the ATO’s approach to managing ACAs has generated inconsistency in the negotiation, operation and sign‐off of the arrangements. It also said the ATO has been slow to evaluate the approach to determine if it is achieving the benefits envisaged. The report found there was scope for the ATO to better differentiate the operation and administrative requirements of ACAs from other compliance activities. It said there was scope for greater consistency and improved monitoring and management of ACAs.
The report made 2 recommendations, both of which were accepted by the ATO.
[LTN 215, 6/11/14]