Code of settlement practice

Attachment A - Statement of compliance

Statement of compliance with the Code of settlement practice

Siebel case ID ________

Background to Statement of compliance

The Statement of compliance is an important step in ensuring the integrity of information relating to the ATO's settlement activity. The Siebel case management system is used to compile information about ATO settlements for the Commissioner's Annual Report to Parliament and in a range of other external and internal reports. Relevant settlement data must be entered onto Siebel by the case officer within 14 days of the settlement deed/agreement being signed by all parties and the data must be accurate and complete.

Part A - Settlement process complies with Code

The decision maker (delegate/authorised officer) who approves the settlement should be satisfied that the Code has been complied with in all respects including:

• in the conduct of settlement negotiations
• that each step of the settlement process has been fully documented
• that the settlement submission fully details the rationale for entering into settlement.

The Statement of compliance with the Code should be completed by the decision maker at the same time the deed/agreement is signed. The decision maker should consider the matters raised in the checklist below.

I, _____________________________________________________________,

(Decision maker's name) (Level) (Position number) (Business line)

a delegated/authorised officer with the power to conclude settlements, am satisfied that the Code of settlement practice has been followed and complied with.

Signature ________________________________________

Date ____/____/____

Part B - Settlement recorded on Siebel

Part B is to be completed by the manager/team leader involved in the settlement process after the settlement is registered on the Siebel case management system. This satisfies the requirement of paragraph 68 of the Code that states the details of every settlement, including the justification or underlying reasoning for the settlement, must be recorded on Siebel. In completing Part B, the manager/team leader needs to consider the matters raised in the checklist below.

Date settlement deed/agreement has been signed by all parties: ____/____/____

Date settlement recorded in Siebel case management system: ____/____/____

Siebel case ID No: ________

I confirm that, based on the information available at the time of recording this settlement on Siebel:

1. All relevant taxpayers to the settlement deed have been included on Siebel.
2. All relevant fields in relation to this settlement have been completed in Siebel.
3. I have verified that all amounts recorded as the pre-settlement position for tax, notional tax on losses, credits, penalty and interest are accurate and complete.
4. I have verified that all amounts recorded as the settled amounts for tax, notional tax on losses, credits, penalty and interest are accurate and complete.

Name of Manager/Team Leader __________________________________

Level ______

BSL __________

Signature ________________________________________

Date ____/____/____

Attach this completed Statement of compliance to Siebel where all other settlement documentation is stored as proof of compliance with the Code.

The checklist below is to help the decision maker and officers to comply with the Code and should be considered in completing Parts A and B of this Statement of compliance.

Checklist

1. The policy processes and practices that must be followed in reaching a settlement are set out in:
• the Code
• PS LA 2007/5 Settlements
• PS LA 2007/6 Guidelines for settlement of widely-based tax disputes
• PS LA 2007/23 Alternative dispute resolution in Tax Office disputes and litigation.
2. Decision makers approving and/or signing settlement deeds/agreements must ensure they are authorised to conclude settlements. In most cases the delegate will be an SES level officer. Exceptions are National Manager and Director of Promoter Compliance in Aggressive Tax Planning (ATP) and EL2 officers in LSB for settlements not exceeding $1m in Part IVC matters.
3. Decision makers must be aware that the settlement must relate to disputed tax liability and not a compromise of debt.
4. Approval and authorisation to proceed to settlement must be fully documented with reasons to justify the settlement. Decision makers are to review the settlement submission and indicate if the matter is approved for settlement and sign the submission. The settlement submission must also be attached to Siebel.
5. All settlement negotiations should be fully documented and attached to the settlement submission.
6. The settlement must be registered on Siebel within 14 days of the settlement being signed by all parties.
7. Siebel must be updated by the business line settlement coordinator or the case officer handling the case from which the settlement arose if further relevant information becomes available in relation to this finalised settlement. It remains the responsibility of the case officer to ensure Siebel records remain up to date.
8. The completed Statement of compliance must be attached to Siebel.
9. In litigation or other cases where LSB have been asked to provide advice on drafting the deed/agreement, the final version is to be checked by LSB and/or Australian Government Solicitor/Counsel before signing.
10. An agreement under section 42C of the AAT Act may be in respect of a settlement under the Code:
• If there is no pre-existing settlement agreement signed by an authorised officer, the section 42C agreement will constitute the settlement agreement and will therefore have to be signed by an officer authorised to conclude settlements.
• If there is a pre-existing settlement agreement which has been signed by an authorised officer, the section 42C agreement can be signed by the business line officer, the LSB officer or the OCTC tax technical officer (if engaged).

Refer to LSB Instruction Bulletins and PS LA 2009/9 Conduct of Tax Office litigation.