Code of settlement practice

Attachment E - Amendment history of this document

Date of amendment	Part	Comment
April 2013	Paragraph 6	Clarified that settlement process must be fully documented on the relevant Siebel case Removed reference to the corporate register of settlements
	Paragraphs 13 & 82(i)	Updated to include notional tax on losses
	Attachment B	Updated the signatory section of the model deed
September 2012	Throughout	Updated referencing for cited case law
	Throughout	Updated to incorporate changes arising from TTTDM project, including publication of PS LA 2012/1
	Background	Reworded paragraph 3 and moved to Attachment C
	Paragraph 19	Removal of reference to withdrawn PS CM 2003/09
	Paragraph 49, Attachment D	Removal of reference to withdrawn PS LA 2006/2
30 June 2011	Throughout	References to 'Settlement Register' updated to 'Siebel case management system' or 'Siebel'
	Throughout	References to 'Technical Quality Reviews' or 'TQR' updated to 'Integrated Quality Framework' or 'IQF'
	Throughout	Updated references to superseded Law Administration and Corporate Management Practice Statements
	Throughout	Updated referencing for cited case law
	Introduction	Deleted 'Re-released 21 February 2007 The ATO's Code of settlement practice (Code) and the processes which support it have been reviewed and updated'.
	Paragraph 14	Inserted 'Division 269 of schedule 1 to the Taxation Administration Act 1953 (TAA) and previously under'
	Paragraph 18	Inserted 'an appellant'
	Paragraph 38, 40 and 46	Deleted 'the ATO Prosecution Policy' Inserted 'Corporate Management Practice Statement PS CM 2007/02 Fraud control and the prosecution process'
	Paragraph 44	Deleted 'In-House Prosecutions' Inserted 'Administrative Prosecutions'
	Paragraph 56	Deleted 'TCEB Taxpayers' Charter Explanatory Booklet 01, Treating you fairly and reasonably' Inserted 'Taxpayers' Charter'
	Paragraph 68	Deleted Paragraph and heading Inserted New paragraph and heading
	Paragraph 75	Deleted 'The agreement should state that the settlement is conditional upon disclosure of all relevant facts known to the taxpayer at the time of the settlement.' Inserted 'The agreement should state that the settlement is conditional upon a true disclosure of all relevant and material facts relating to the issue being settled as known to the best of a taxpayer's knowledge and belief at the time of settlement. This is reflected in clause 4.1 of the Model Deed of Settlement as set out in Attachment B. The nature of this taxpayer disclosure requirement represents a fair and reasonable balance of the rights and obligations of all parties with respect to the good faith in which settlement negotiations have been conducted'. There are important consequences that may flow if this condition is not observed. For example, the Commissioner may choose to terminate the settlement deed or void or vary terms within the settlement deed. A taxpayer's right of objection or appeal may accordingly be enlivened as a result of the action taken by the Commissioner.
	Attachment B - Model Deed clause 4.1	Deleted 'The taxpayer warrants that to the best of its knowledge and belief it has made a full and true disclosure of all relevant facts to the Commissioner prior to entering into this deed.' Inserted 'The taxpayer warrants that to the best of its knowledge and belief it has made a true disclosure of all relevant and material facts to the Commissioner which relate to the issue, prior to entering into this deed.'
30 September 2010	Attachment B - Model deed	Commissioner's address updated.
24 August 2010	Attachment A - Statement of Compliance	Correction Fix numbering lists on Attachment A Statement of Compliance.
6 August 2010	Attachment A - Statement of Compliance	Revision Changes to the Statement of Compliance including: An expanded introduction providing more detail on the settlement process and explaining that settlements are reported in the Commissioner's annual report to Parliament A revised confirmation by the manager/team leader that information concerning taxpayers involved in the deed, amounts and other relevant information have been entered correctly onto the settlement register An updated checklist to assist decision makers and others to comply with the Code of settlement practice.

¹ Settlements do not usually include cases where our preliminary views are changed prior to assessment - for example, in light of new evidence or where the Commissioner is persuaded to accept a different view of the law. However, processes to ensure proper and sound decision making in these cases are contained in a range of corporately endorsed policies and procedures for the conduct of an audit.

² Tax includes any tax, levy, charge, duty or excise imposed under a law administered by the Commissioner of Taxation.

³ Payment includes any rebate, grant or benefit under a law administered by the Commissioner of Taxation.