The Australian Taxation Office (ATO) has been changing its audit procedures to shift towards “real-time compliance” with an aim of greater tax certainty in Australia through measures such as annual compliance arrangements, pre-lodgment compliance reviews, and the reportable tax position schedule.
The ATO is seeking to reduce the net income tax gap for large companies by attempting to “head off non-compliance before it occurs.”
Taxpayers can still expect significant and extensive reviews of tax positions, particularly when there is a difference in opinion on critical tax issues. To the extent disputation occurs, the ATO may consider alternative dispute resolution and settlement as potential pathways to resolution.
Read an October 2017 report prepared by the KPMG member firm in Australia
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