Publicly listed business (tax manager) – Corporate Tax Manager of KBA Australia Ltd.
‘Strong working relationships in the tax and super systems and getting the certainty we need on our affairs means we can focus on contributing to the economic prosperity of Australia.’
Following an investment proposal to our company board, I was asked to resolve some potential capital gains tax implications of a restructure. Our board takes tax governance seriously. They had given their conditional approval, subject to resolving the tax issues quickly, and they are keen to report to our US parent on this restructure.
As the corporate tax manager of KBA Australia Ltd, I called my contact Jessica at the ATO to discuss the restructure. As Jessica and I speak regularly about KBA’s tax affairs, I knew that by working with Jessica and explaining our approach, I would be able to get clarity around the CGT implications and report back to the board quickly. She already had an understanding of our business and the environment that we operate in, and I knew that she would be sensitive to the confidential and urgent nature of my request.
I gave Jessica access to the restructure documentation on our system so that she could quickly get across the proposal. Within a few days Jessica contacted me with some questions about our US parent company. We quickly provided her with the additional information she needed.
Jessica and relevant ATO experts reviewed the information and shortly afterwards, she contacted me to schedule a meeting. At the time of organising the meeting, she provided me with an indicative ATO position, reasoning and underlying assumptions.
During the meeting we openly discussed the position the ATO had provided to us. We challenged their thinking, and after a little back and forth and clarifying the facts, we reached an agreed position. Jessica formalised the position and provided a summary of this advice the following day.
Due to the timely advice provided, the board were able to make an informed decision at their next board meeting. They were confident that the advice we’d received from the ATO gave the stakeholders and board certainty that the issues were resolved. As we were open with the ATO from the initial stages of the arrangement and provided all relevant information at the time, the company received notification that we did not need to complete a reportable tax position schedule in addition to our return. It was also noted that the arrangement would not be subject to any subsequent compliance activity by the ATO.
Working with the ATO is a really professional experience. We know that we got the CGT position right before we proceeded with the arrangements and before we needed to report on it in our return. We value the benefits of having an open and transparent relationship – it works both ways.
What the ATO does
- Due to the complexity of KBA’s affairs, Jessica is proactive about contacting Aashia to assess the proposed arrangement and any tax risks.
- Aaisha has access to knowledgeable and empowered staff with relationship management expertise who understand Aashia's business and are decision makers.
- Our staff understand Aashia's commercial drivers and business environment.
- We are professional and realistic in our service timeframes and delivery.
- Jessica has access to experts in the ATO and externally to provide the best service.
- Interoffice connectivity allows Jessica to provide a timely and accurate ATO view. This connectivity is people based, with relationship management facilitated by technology.
- Our systems accurately record our interactions with Aashia on behalf of KBA, we know they have done the right thing and we exclude the CGT implications of the restructure from any future compliance activities.
How the ATO behaves
- We have a service focus.
- We collaborate across the ATO and government to understand our clients' circumstances and offer a fair and differentiated service.
- We get things done promptly and with purpose.
- We build trusted relationships.
- We are supported to take ownership, exercise judgment and make timely decisions.