Last year just under 2 million review and audit activities were completed with around 600,000 resulting in an amended assessment.
The vast majority of adjustments are not disputed. This is an important indicator that we are working effectively with taxpayers to understand and resolve issues during the course of an audit or review.
In 2011-12, around 34,000 objections were received. See table 2.1A. Around 27,000 (80%) objections relate to income tax assessments. In some cases, taxpayers have lodged objections to their own assessment to adjust their original claims. Those objections do not arise from our audit and review activity. Objections can be related to tax adjustments, tax adjustments and penalties or solely about penalties.
In some cases, taxpayers resolve their dispute with the ATO by entering into a settlement with the ATO. In 2011-12, 31 small-to-medium enterprises cases were resolved through settlement, including 15 high wealth individuals cases. In the large market, 17 cases were settled. Several of these cases were settled during the audit stage. See table 2.1B.