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  • Early engagement with large privately owned and wealthy groups

    Large privately owned and wealthy groups, including groups controlled by high-wealth individuals, are behind some of Australia’s most successful businesses. We recognise their importance to community confidence in the tax and super systems.

    For the top 320 largest privately owned and wealthy groups our engagement activities may involve an initial engagement to confirm our understanding of the perceived risk, a tailored pre-lodgment compliance engagement, a post-lodgment review or an audit. We may engage with you in real time in certain circumstances – for example, if commercial arrangements such as sales, corporate restructures or transactions are perceived to be high risk.

    When we contact you we want to establish a productive and professional working relationship built on transparency.

    The pre-lodgment compliance engagement is aimed at raising and resolving potential tax risks as they occur.

    The engagement will typically involve:

    • the identification and assessment of tax risk during the year of income, including understanding the facts upon which a decision was made
    • an effective and timely disclosure regime based on information and documents provided by you (this does not prevent the gathering or use of any other relevant information or documentation)
    • building an understanding of your business, including a review of your tax governance processes – for example, your decision-making framework, policies, processes and systems
    • a level of intensity and differentiation commensurate with our view of your tax risk position, allowing for flexibility in the application of the review.

    It aims to ensure transparency through the:

    • identification, assessment and evaluation of potential areas of concern, areas of interest (for example, new business) and tax risk
    • early engagement and building of transparency and willing participation
    • building and maintaining of ongoing open dialogue.

    The compliance engagement may provide practical certainty. Certainty can also be provided through other mechanisms, such as the rulings system.

    See also:

    Last modified: 01 Sep 2017QC 44843