SME minutes, June 2011

11. Private group approach

Richard Collis provided information about the private group approach that S&ME is adopting for profiling purposes.

Two questions were posed at the start of the presentation to ponder and respond to at the conclusion:

• What is you immediate reaction?
• What issues do you think will arise?

A private group is usually comprised of immediate family or a very tight extended family ie not all aunts and uncles.

The ATO historically has looked at income and output solely around an entity. Now profiling takes place considering all the linking entities and factors, thus providing a whole different picture.

The ATO wants take the tax and super systems to a new level so people do see them as community assets. Additionally, we want to tell the community about our activities, be overt about them.

Members' feedback around initial questions

• The ATO needs to go to the 'whole structure' approach. Tax agents think that way already and if you don't, you can miss a lot.
• It's a logical extension of current ATO activity.
• Assessing a family, addressing all the links is one thing but what about knowing about the other entities tied up with all the family members?
• Do you have access to all the relevant information that you need?
• ATO staff need to be on side with the new focus.

Communicating this approach may pose a challenge as it starts to get personal.

Sections within Agenda items

• 1. Introductions and welcomes
• 2. Table and acceptance of previous minutes and action items
• 3. Action items - update
• 4. Presentation - Tax practitioners - good governance and promoter penalty laws
• 5. Update on Division 7A
• 6. Trust streaming and the proposed legislation fix
• 7. Federal budget implications
• 8. Mergers and acquisitions
• 9. Sharing ATO risk assessment
• 10. Risk differentiation framework
• 11. Private group approach
• 12. Other business