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  • Large Business Stewardship Group key messages 23 March 2022

    Compliance risks and emerging issues

    The ATO provided an update on compliance risks and emerging issues.

    Legal professional privilege (LPP) protocol

    Consultation on the legal professional privilege draft protocol occurred last year. It has been revised to address feedback on the cost of compliance with the protocol, dispute resolution issues and the application of waivers. Finalisation of the protocol is expected in June 2022.

    Loss carry back

    The loss carry back (LCB) discussion covered how to show LCB in 2022 income tax returns and what happens when an entity joins a consolidated group before the end of the financial year. Web guidance will be updated to reflect this.

    Top 1,000 Next Actions Program

    The ATO informed members how taxpayers are addressing the issues identified by undertaking their own corrections and that there has been an increase in revenue/capital issues in transfer pricing cases. Feedback on timing was provided by members. The ATO will share findings so that clients picked for next action reviews can be well prepared.

    Members’ feedback

    PAYG instalment variations

    Members noted that it is difficult to estimate instalment variations within the 15% margin and avoid penalties, and that there is a need for a proactive process to avoid penalties and for remission requests.

    The ATO advised that there are voluntary disclosure provisions and a range of remission options available, and that we would look into the issues raised.

    De-minimis exemption for low-risk entities/transactions

    Members noted the de-minimis exemption for low-risk entities/transactions is time consuming and if small, the resourcing is not justified, particularly for start-ups with significant expenses.

    The ATO advised that the first year of applying a de-minimis exemption is difficult but is easier in the follow-up year. The ATO will review how much work is needed to comply.

    Advance pricing arrangement program

    A review of the advance pricing arrangement (APA) program will be conducted in 2022 to focus on how the program provides certainty to taxpayers and encourages cooperative compliance. The review will consult widely including with Large Business Stewardship Group members. There was a general discussion about the time taken to obtain an APA and how the APA process interacts with justified trust processes.

    Top 1,000 income tax and GST assurance programs

    The ATO will update the GST component of the Combined Assurance Review program. Proposed updates include:

    • separate assurance ratings for each focus area
    • a meeting with taxpayers once all information is received, to review
    • reviewing a taxpayer’s data testing to ensure it is compliant with ATO guidance
    • an e-audit where there are specific industry risks, issues identified, or we are unable to use the GST Analytical Tool (GAT).

    Tax risk management guide for Top 1,000

    Members noted the guidance was excellent and provided feedback that achieving a stage 3 rating is an issue with most taxpayers due to budget constraints and costs involved in getting external sign off. Members queried whether the stage 3 rating can be based on risk profiling by industry and the size of the company. The ATO will look at member feedback and the cost of independent reviews.

    GST Justified trust reviews

    Members provided feedback that the ATO ensure the questions are tailored and to try to stagger our approach when there are several reviews, requests for information in progress. Members noted that the GAT is not suitable for some industries such as the property industry. The ATO advised that the aim is to improve engagement, prioritisation and materiality for Top 100 GST reviews.

    Board of Taxation

    The capital gains tax rollover review report is due 22 April 2022.

    The Board of Taxation is undertaking a review into the appropriate policy framework for the taxation of digital transactions and assets in Australia. The terms of referenceExternal Link were released by the government on 21 March 2022.


    Treasury provided an update on recent legislation and other key topics:

    • Intangible assets depreciation consultation ended in December 2021. The Bill was introduced in Parliament on 9 February 2022.
    • The loss carry back extension amendments were passed on 22 February 2022.


    Treasury provided an update on the latest developments with Organisation for Economic Cooperation (OECD) Pillar 1 and Pillar 2 programs:

    • Pillar 1 (Amount A) and the extractive industry exclusion – There is a big push on timeframes and model rules to support implementation, with a potential Multilateral Convention signing ceremony mid 2022.
    • Pillar 1 (Amount B) – The transfer pricing rules simplification focused on needs of developing economies is progressing on a separate timeline and is to be finalised by the end of 2022.
    • Pillar 2 – OECD has invited public input on the Implementation Framework of the global minimum taxExternal Link with comments due 11 April 2022.
    • From a business perspective, compliance costs have been raised with some suggesting grounds for safe harbours. Treasury will continue to consult with both pillars.


    Attendees list




    Rebecca Saint (Co-chair), Public Groups and International


    Faith Harako, Public Groups and International


    Michael Ingersoll, Public Groups and International


    Rebecca Richards, Public Groups and International

    Australian Banking Association

    Darren Norman

    Australian Petroleum Production and Exploration Association

    Michael Fenner

    Australian Retailers Association

    Abs Osseiran

    Australian Super

    Bevan Grace

    BHP Billiton

    Premila Roe

    Big 4 Representative

    Cindy Perryman

    Business Council of Australia

    Pero Stojanovski

    Corporate Tax Association

    Michelle de Niese (Co-chair)

    Elders Limited

    Vanessa Trengove

    Law Council of Australia

    Adrian Varrasso


    Megan Williams

    Property Council of Australia

    Kelly Wong

    Seven West Media

    Angela Giunta


    Brian Purdy

    Tax Institute of Australia

    Pete Rhodes


    Marty Robinson


    Maryanne Mrakovcic

    Guest attendees

    Guest attendees list




    Cecilia Zhao, Public Groups and International


    Donna Lyons, Public Groups and International


    Harjit Singh, Public Groups and International


    Hector Thompson, Public Groups and International


    Simon Hellmers, Public Groups and International


    Tom Wheeler, Public Groups and International

    Board of Taxation

    Michelle Calder


    Apologies list



    Adelaide Brighton Cement

    Mimi Ferguson


    Irene Filippone

    Board of Taxation

    Christina Sahyoun

    Group of 100

    Marc Lewis

      Last modified: 17 Jun 2022QC 69881