External compliance assurance process
In 2013, we began exploring an external compliance assurance process (ECAP) for taxpayers in the large market. After several months of consultation and design, we announced a pilot in June 2014.
The intent of our ECAP pilot was to test the effectiveness and viability of taxpayers using agreed upon procedures by registered company auditors to check factual matters identified by the ATO.
The pilot ran from July 2014 to January 2015 and involved 56 companies.
The pilot was successful in its objectives, demonstrating the effectiveness of agreed-upon procedures (AUP) for both taxpayers and the ATO in undertaking assurance activities. Supporting evaluation and effectiveness, we undertook integrity checks of 25% of ECAP cases which confirmed procedural adherence by auditors and high quality records substantiating findings.
The following three stages relate to the evolution of ECAP as a concept.