I would like to welcome you to our refreshed version of the Large business and tax compliance (LBTC) publication.
In refreshing this publication, we have consulted extensively with a cross-section of large businesses and their representatives about our mutual experiences since the previous version two years ago.
The LBTC publication seeks to provide a tangible demonstration of our commitment to transparency and accountability. I am pleased to see the mutual expectations outlined in the LBTC publication are already being used to guide a consistent and professional relationship. I see transparency as key to early engagement, to allow the ATO to provide certainty quickly as part of our shift to cooperative compliance, and to build ongoing trust and confidence.
Working together in an open and transparent way means that we can provide large business with high levels of practical certainty in a competitive global business environment. We can also provide assurance to the Australian community that we are administering the tax and superannuation systems effectively.
Our risk-differentiation framework (RDF) continues to influence our relationship with you and how we engage with you. It has been refined and enhanced since the last LBTC publication and shapes the level and intensity of our interactions with you. It informs you of our view of your relative risk, enabling you to choose how you want to engage with us.
In many respects the implementation of the RDF has been a game changer, allowing businesses to work more cooperatively with us and vice versa. We are now extending the framework to small-to-medium enterprises and tax practitioners. This approach will provide a whole-of-ATO view across taxes for these markets.
Looking forward, the ATO remains committed to administering the tax system in real time and exploring ways to provide practical certainty. The introduction of the reportable tax position schedule and pre-lodgment compliance reviews are part of this approach.
The reportable tax position schedule facilitates real-time engagement with large business on their most contestable and material tax positions. Introducing the schedule supports our efforts in providing faster and comprehensive clarification of the tax law and enables us to review the activities of the largest businesses in a timely manner.
Pre-lodgment compliance reviews assist in identifying and assessing tax risks before lodgment and provide us with a high-level understanding of your business operations and key transactions.
Both our reportable tax positions and pre-lodgment compliance reviews emphasise the importance we place on the early identification and resolution of issues and support our shift from post-lodgment compliance activities to a real-time engagement model.
This publication reaffirms our commitment to encourage, support and protect willing participation in Australia's tax and superannuation systems. Together, we can continue to build relationships that make Australia a great place to do business.
Michael D'Ascenzo
Commissioner of Taxation
Last Modified: Wednesday, 27 February 2013