• Recommendation 3.9

    The IGT recommends that the ATO improve the RDF notification letter process for higher consequence taxpayers by:

    1. providing tax managers with a draft risk report;
    2. having a dialogue with tax managers to address any factual errors and discuss the ATO’s concerns;
    3. having the risk report subject to a moderation process after this dialogue;
    4. preparing the RDF notification letter by:
    1. taking into account previous dialogue with the tax manager;
    2. reflecting any recent ATO compliance activity, such as current or concluded PCRs or ACAs;
    3. aligning it with any protocols or frameworks generated as part of implementing the TAP; and
    4. including a roadmap for expected or likely ATO compliance requirements regarding specific concerns; and

    5. upon finalising, sending the RDF notification letter to the CEO.

    ATO response

    We agreed and this recommendation and implementation was completed on 26 November 2014.

    As agreed with the IGT in July 2014, we will:

    • only notify those whose rating we plan to change
    • have a conversation with taxpayers rather than produce a risk report document

    The internal RDF procedures document was updated to reflect this approach.

    Our 2014 letter template for notifying taxpayers of their risk differentiation framework categorisation was updated to include recent compliance activities and guidance for future interactions where relevant.

      Last modified: 02 Apr 2015QC 44737