BUSINESS

SEGMENT AUDIENCE DATE

AUSTRALIAN TAXATION OFFICE - UPDATE www.ato.gov.au

Australian Taxation Office Update

OASIS TaxXML Technical Committee

September 2004

BUSINESS

SEGMENT DATE

Presented by: Paul MaddenFirst Assistant CommissionerAustralian Tax Office

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Current e-services and products:

> Business portal Launched March 17 2000- 30k unique logins/month

> Portal lodgement 101K since March> Tax agent portal > 600k unique hits/month> ABR 72.9% of all business registrations> e-Tax 34.8% of all self-preparers 2002/03> ELS 6,315,718 IT Returns YTD, and> ECI > 17 million transactions 2002/03.

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

New e-services and products:

> web services, eg. integration with commercial software packages eg eAS

> third party import, eg. health insurance commission data into e-Tax

> Combined services eg Centrelink TFN Declaration and TFN Registration

> Integrated single account – all client obligations.

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Electronic Activity Statements (1)

> Facilitated Model (allows lodgement of Activity Statement from software packages directly into ATO Portal)

Two software developers have now built this facility into their product and is being used in production

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Electronic Activity Statements (2)

> Web Services Pilot due to commence on Nov 1 2004 Services available include:

- List Activity Statements (AS)- Get AS- Validate AS- Submit AS- ATO Anonymous- ATO Connection test – authentication- ATO Connection test – non-repudiation- ATO Text

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Electronic Activity Statements (3)

> ATO providing the Common Signing Interface which incorporates the ATO corporate web services

> Pilot will be evaluated in Feb/Mar 2005> Work is also progressing on addressing:

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Other Initiatives

>Approaches from other organisations and agencies include:Full XBRL v2.1 Technical Implementation to support

preparation and lodgement of Company Income Tax Return

Download of information from 3rd party software products into ATO’s etax product

Conversion from paper outputs to direct electronic lodgement of Income Tax Returns for existing 3rd party software products

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

#. Compliance Assurance Through Software - CATS

Individuals and businesses self-assess

CONTEXT

>>

>

CAPABILITIES

We manage relationships and differentiate accordingly

We shape internal and external capabilities

We verify compliance using a risk management approach

We make it as easy as possible to comply

APPROACH

>

RELATIONSHIP

Compliance model

CATSCompliance Assurance for the Tax OfficeCertainty and Closure for the Tax Payer

High integrity businesssoftware

End to Endprocess &

connectivity

Trustedadvisor

Soundbusinesspractices

ENFORCEMENT STRATEGIES

Auditwith/without

Penalty

Record Keeping Reviews

Education/ Record KeepingService Delivery

(convenience, access, choice, control)

Real Time BusinessExaminations/

Pros-ecute

DriversLTTC

ROSA

InspectorGeneral

Recognising goodcompliance behaviours

PublicConfidence

Better targetedactive compliance

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

#. Compliance Assurance Through Software - CATS

Value propositionKey messages: What’s in it for me?What do I do?What is different?

Software & SetupComplies with Tax Office specificationsWeb service Integrated tax reportingInstalled and customised by trusted third party to reflect- business operations- tax obligations &- appropriate business processes and practices

Running the businessPrompts for reconciliations etcValidations & edit checksElectronic audit trail onAbility to export an audit file if requested

Tax ReportingReport generated from e-business recordsAll changes to records logged to audit trailAdditional CATS data sent with tax report ie:- integrity results or - name & version of software- Identifier of trusted third party

Processing systemsRisk assessment _ incorporating CATS dataAppropriate response-Reward low risk

Business experienceRecognition on receiptLow risk – no further revioewConcessional penalty regimePeace of mind

Real or near time response

How might it work

www.ato.gov.auAUSTRALIAN TAXATION OFFICE - UPDATE

Thank you