The IGT recommends that, in consultation with tax practitioners, the ATO develop and publish a complete guide on the operation of RDF for tax practitioners. Matters to be covered by the guide include:
- the risk hypothesis being tested;
- the inputs used;
- tax practitioners opportunity for review to initial risk rating (consistent with the principles of natural justice);
- communications between the ATO and practitioners;
- confidentiality of the risk rating as between the ATO and the practitioner;
- referral to the ATO’s Aggressive Tax Planning Unit where the promoter penalty regime may apply; and
- referral to the Tax Practitioners Board where the Code of Professional Conduct
We agree with the recommendation. The recommendation was implemented and completed on 26 November 2014.
We consulted with the ATO Tax Practitioner Advisory Group, which is comprised of professional associations and tax professionals, on a draft guide. The document was then finalised and Risk assessment and engagement has been published.