Pre-lodgment compliance review timeline

Timeline purpose

This timeline indicates key points in the pre-lodgment compliance review (PCR) cycle. Potential meeting points and subjects are shown, as well as information sources the taxpayer should have available at that point. Information collected at these points assists risk identification and assessment for your lodgment.

This timeline also indicates other potential sources of information that could be obtained from the ATO and other regulators.

You can also download this information in a portable document format (PDF) – Pre-lodgment compliance review timeline (PDF, 258KB)This link will download a file.

Meeting points by quarter

Details of the typical meeting points for each quarter by:

Income year
Lodgment/ review year.

Income year

Quarter 1

Tax year begins
Taxpayer businesses and financial updates
Taxpayer disclosures
Significant transactions
PCR framework including PCR intent, communication protocols and information gathering
Significant related party and third-party deals

Quarter 2

Taxpayer businesses and financial updates
Taxpayer disclosures
Significant transactions
Tax governance
Significant related party and third-party deals
Tax effect accounting processes
Tax return preparation and review process

Quarter 3

Taxpayer businesses and financial updates
Taxpayer disclosures
Significant transactions
Tax computations and tax positions taken for accounting
Significant related party and third-party deals

Quarter 4

Tax year ends
Taxpayer businesses and financial updates
Taxpayer disclosures
Significant transactions
Significant related party and third-party deals
PCR framework updates

Lodgment / review year

Quarter 1

Taxpayer businesses and financial updates
Taxpayer disclosures
Tax computations and tax positions taken for accounting purposes after final reports prepared
PCR framework updates

Quarter 2

Final payment
Taxpayer businesses and financial updates
Taxpayer disclosures
PCR framework updates
The return and schedules being prepared

Quarter 3

Tax return lodgment
Final return and schedules and any issues
Supplementary annual GST return lodgment
Potential amendments
PCR framework updates

Quarter 4

Final return and schedules and any issues
Potential amendments

Information sources by quarter

Information sources you need to assist risk identification and assessment for your lodgment.

Income year
Quarter	Potential information sources available from taxpayers	Other taxpayer reporting to ATO	Other taxpayer reporting to regulators	Government material and potential discussion points	ATO provided information
Q1	Documentation for disclosures made Group reporting packs or equivalent	Activity statements Pay-as-you-go (PAYG) payments	None	Recent and anticipated tax legislative program	ATO findings and recommendations Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q2	Documentation for disclosures made Tax governance documents Tax effect accounting processes and documents Tax return preparation and review process documents Group reporting packs or equivalent	Activity statements PAYG payments	Australian Securities & Investment Commission (ASIC) / Australian Prudential Regulatory Authority (APRA) / Australian Stock Exchange (ASX) Lodgments, analyst presentations and announcements on half year accounts	None	ATO findings and recommendations Tax compliance program information Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q3	Half-year financial statements and tax effect working papers Tax income calculations Deferred tax assets Deferred tax liabilities Tax notes Market disclosures Head office / audit committee tax reporting (having regard to PS LA 2004/14) Group reporting packs or equivalent	Activity statements PAYG payments Fringe benefits tax (FBT) return	ASIC/APRA/ASX Lodgments, analyst presentations and announcements on half year accounts	Mid-year economic fiscal outlook	ATO findings and recommendations Tax return instructions and changes Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q4	Documentation for disclosures made Group reporting packs or equivalent	Activity statements PAYG payments	None	Budget tax announcements	ATO findings and recommendations Tax compliance program information Developments in law and administration of relevance to taxpayer Risk and strategy updates

Lodgment / review year
Quarter	Potential information sources available from taxpayers	Other taxpayer reporting to ATO	Other taxpayer reporting to regulators	Government material and potential discussion points	ATO provided information
Q1	Full-year financial statements and tax effect working papers Tax income calculations Franking account Year-end adjustment entries Deferred tax assets Deferred tax liabilities Tax notes Market disclosures Head office / audit committee tax reporting (having regard to PS LA 2004/14)	Activity statements PAYG payments	ASIC/APRA/ASX Lodgments, analyst presentations and announcements on full year accounts	Recent and anticipated tax legislative program	ATO findings and recommendations Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q2	Documentation for disclosures made	Activity statements PAYG payments	ASIC/APRA/ASX Lodgments, analyst presentations and announcements on full year accounts	None	ATO findings and recommendations Tax return instructions and changes Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q3	Tax returns and all schedules Reportable tax position schedule Country-by-Country (CbC) reporting (where available) Detailed statement of taxable income Supporting working papers Elections Reconciliations Documentation for disclosures made	Activity statements PAYG payments Supplementary annual GST return (SAGR) lodgment	None	Mid-year economic fiscal outlook	ATO findings and recommendations Developments in law and administration of relevance to taxpayer Risk and strategy updates
Q4	None	Activity statements PAYG payments CbC lodgment	None	Budget tax announcements	ATO findings and recommendations Developments in law and administration of relevance to taxpayer Risk and strategy updates

Group reporting packs or equivalent

Group reporting packs or equivalent are submitted by an Australian subsidiary to a parent company for the purposes of accounting consolidation.

The pack usually includes:

a balance sheet and profit and loss statement
schedules that feed into the group financial statements
notes to the financial statements.

Developments in law and administration of relevance to taxpayer

Examples of relevant developments may include:

public rulings program
advance pricing arrangement program
industry issues
key ATO speeches
consultative forum news.