• 7. ATO’s approach to accessing corporate board documents and the status of Practice Statement Law Administration 2004/14: Access to corporate board documents on tax compliance risk

    Jeff Stevenson outlined the ATO’s plan to review the current approach to accessing corporate board documents and to update the Practice Statement Law Administration (PSLA) 2004/14: Access to corporate board documents on tax compliance risks. This matter was requested for discussion by Trevor Hughes, LBLG member and partner at Ernst & Young.

    Jeff informed members that the ATO is currently reviewing PSLA 2004/14 to bring it up to date with our current real time engagement approach to large market active compliance. In particular the ATO is looking at:

    • our position in accessing corporate board documents for the purposes of active compliance reviews
    • what is meant by corporate board documents: what is covered and not covered
    • what the taxpayer must do to claim the concession.

    The ATO held a workshop in July this year with representatives from the Big 4 accounting firms and the Corporate Tax Association to discuss the ATOs corporate tax governance guidelines and the review of PSLA 2004/14.

    A number of issues and questions were raised by members in relation to the Practice Statement including: the confidentiality of board documents; the definition of documents covered and not covered by the concession; the status of attachments to board documents and what is meant by ‘exceptional circumstances’ as provided in the PSLA 2004/14.

    Jeff Stevenson will provide an update on these activities at a future LBLG meeting, including progress made on the review of PSLA 2004/14.

    Action item:

    04-120813

    Provide examples of the types of documents that are escalated to the board to assist in determine what types of documents may be of interest to the ATO.

    Due date:

    18 November 2013

    Responsibility:

    LBLG members through the LBLG Secretariat

      Last modified: 29 Nov 2013QC 37942