The ATO has released its Real-time compliance engagement approach for higher consequence taxpayers in the large market. It says the information outlines the policy behind its approach to higher consequence taxpayers.
According to the ATO, it uses pre-lodgment compliance reviews (PCRs) for all higher consequence taxpayers that do not have an annual compliance arrangement. It says this risk review approach typically involves identifying and assessing material tax risk on a periodic basis in a pre- and post-lodgment period.
For PCRs, the ATO says it will send a finalisation letter within 6 months of lodgment confirming any tax risks identified during the review. It says the letter will also include issues it considers appropriate to bring to a taxpayer’s attention, as well as treatment options. However, the ATO says PCRs do not provide any certainty or sign-off of the lodged income tax return.
[LTN 32, 18/2/13]