ATO consultation report

This report describes ATO consultation activities to 30 September 2019.

This report is prepared monthly and shared with our stewardship groups.

It contains:

• Consultation matters
  • Statistics
  • Consultation matters received September 2019
  • Consultation matters completed September 2019
  • Draft advice and guidance products open for consultation in September 2019
   
• News
  • Stewardship groups
  • Special purpose working groups
    • Other related groups
     
  • Stakeholder relationship groups
   

Consultation matters

Statistics

Consultation matters received September 2019

[201928] Access to deceased taxpayers’ information

[201925] Successor fund transfer reporting protocol: general review

Consultation matters completed September 2019

No consultation matters were completed in September 2019.

Draft advice and guidance products open for consultation in September 2019

GSTR 2019/D2 Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia)

Decision impact statement - Linfox

PCG 2019/D4 Expansion of estimates regime to GST, LCT and WET

PCG 2019/D5 ATO compliance approach to transfer pricing issues related to projects involving the use in Australian waters of non-resident owned mobile offshore drilling units

PS LA 2019/D1 Remission of additional superannuation guarantee charge

TD 2019/D8 Income tax: what is an 'employee share trust'?

See Open consultation for current products open for consultation.

News

Stewardship groups

The National Tax Liaison Group (NTLG) met and it was noted that it was the 35th anniversary of the NTLG with its inaugural meeting held on 15 August 1984. The Commissioner attended the meeting and noted his appreciation to NTLG members for their contributions to the administration of the tax system. Topics discussed at the meeting included:

• an overview of the new Inspector-General and Taxation Ombudsman role and focus on improving the administration of the tax system for all taxpayers
• an overview of the new Inspector-General and Taxation Ombudsman role and focus on improving the administration of the tax system for all taxpayers
• the potential outcomes from the review of the Tax Practitioners Board and the Tax Agent Services Act review
• the proposed measure for the disclosure of business tax debts to credit reporting agencies
• Small Business income tax gap
• ATO Corporate Plan 2019-20.

The ATO conveyed to members the approach taken regarding employers who made voluntary disclosures in anticipation of the proposed Superannuation Guarantee amnesty.

NTLG members provided positive feedback on the way the ATO communicated the Small Business income tax gap with a focus on the behaviours of taxpayers.

The Private Groups Stewardship Group met and the topics discussed included:

• the future release of the High Wealth Private Groups Tax Gap with members invited to take part in future discussions
• submissions received in response to the ATO’s consultation paper for 201921 Extension of the Reportable Tax Position (RTP) Schedule to large private companies and corporate groups. Members supported the decision to defer the expansion of the RTP Schedule to include large private companies and corporate groups until 2020-21.
• the new modular request for information template being developed for the High Wealth Private Groups Program
• Research and Development Tax Incentive
• key international issues in the private wealth market, including the International Dealings schedule (IDS), with members invited to provide details of specific irritants or concerns with the IDS for future discussion
• the 2019 ‘Report of Entity Tax Transparency’ and the ATO’s legislative obligation to publish certain information about corporate tax entities. Members were invited to contact the ATO if they have any questions or issues as the ATO works with them and their clients in the coming months to determine the information to be published.

Following discussion with members on the development of the new modular request for information template, the ATO agreed to:

• notify a taxpayer of the intention to engage with them through a streamlined assurance review in the coming months so that the taxpayer has an opportunity to prepare before the review commences
• trial an option for a taxpayer to meet with the ATO at the start of the streamlined assurance review process before any tailored request for information letter issues. It is expected this approach will assist the ATO to understand the taxpayer’s business and better tailor the request for information letter
• work with taxpayers and their advisers to negotiate time frames for providing the requested information.

During September Tax Practitioner Stewardship Group members:

• provided advice on a proposed letter campaign for employers that have previously not met their superannuation guarantee obligations
• discussed and provided feedback on the recent letter campaign that outlined the investment diversity requirements for self-managed superannuation funds.

Special purpose working groups

The Activity Statement Financial Processing (ASFP) Working Group continued to meet fortnightly to discuss elements of the project that will impact on the client and tax practitioner experience. The topics discussed in September included:

• Payment Receivables Management models needed to conduct debt collection activities once ASFP is implemented
• change management activities being conducted with tax practitioners.

The AUSkey Transition Working Group met and the topics discussed included:

• an update on the AUSkey replacement program
• a demonstration of the Relationship Authorisation Manager (RAM) screens and functionality and the integration with access manager
• the solution developed to import current access manager permissions attached to AUSkeys into RAM
• the progress on how to manage the exception cases who are unable to meet IP2 identity verification criteria for myGovID
• key upcoming activities in the communication and engagement plan for the transition.

The Tax Time Shareable Content Group met to review and provide feedback on the following products being developed for the Tax Time toolkit on the ATO website:

• Using company money or assets
• What to claim for call centre operators or client service representatives.

Other related groups

The Single Touch Payroll (STP) Client Engagement Focus Group (sub group of the STP special purpose working groups) met and members were:

• briefed on the results from usability testing of employer contribution history and comparison screen options
• provided an update on the Activity Statement prefill pilot and Small employer strategy
• informed about the initial diagnostic outcomes
• provided an opportunity to provide feedback on nudge emails for non-finalised STP records.

The STP Phase 2 Payroll Focus Group (sub group of the STP special purpose working groups) met and members were:

• informed about the Cross Agency Governance Committee endorsement of the recommended design concept for the data restructure and discussed the detailed design process, definitions and validations, and proposed changes to guidance, with industry members given the opportunity to confirm key design priority areas and provide input on each topic
• briefed on next steps including progressing the detailed design and engaging the broader digital service provider community.

Stakeholder relationship groups

The Superannuation Data Standard Technical GroupExternal Link (SDSTG) met and the topics discussed included:

• progress on the issues on the Group’s issues register as well as identification of two new issues around member matching and STP and Member Account Transaction Service (MATS) reconciliation
• progress on the AUSkey transition, including:
  • myGovID for android which is currently in private BETA and expected to be available via public BETA (soft launch) early October
  • recent machine to machine deployment giving the ability and permissions to support users getting a machine to machine credential.
   
• an overview of the ATO’s Identity Security Program including the identity security strategy and the work underway to reduce identity crime
• an update on SMSF rollovers V3 and the design consideration to include the release authority component
• progress on the Operational Framework that, following industry consultation, was rolled out in March. Overall most existing digital service providers have met the transition timeframes and any issues are being managed on a case by case basis.