BUSINESS SEGMENTAUDIENCEDATE AUSTRALIAN TAXATION OFFICE - UPDATE Australian Taxation Office Update OASIS TaxXML Technical Committee September 2004BUSINESS SEGMENTDATE Presented by: Paul Madden First Assistant Commissioner Australian Tax Office

AUSTRALIAN TAXATION OFFICE - UPDATE Current e-services and products: >Business portal Launched March k unique logins/month >Portal lodgement101K since March >Tax agent portal> 600k unique hits/month >ABR72.9% of all business registrations >e-Tax34.8% of all self-preparers 2002/03 >ELS6,315,718 IT Returns YTD, and >ECI> 17 million transactions 2002/03.

AUSTRALIAN 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.

AUSTRALIAN 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

AUSTRALIAN TAXATION OFFICE - UPDATE Electronic Activity Statements (2) >Web Services  Pilot due to commence on Nov  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

AUSTRALIAN 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:

AUSTRALIAN 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 3 rd party software products into ATO’s etax product  Conversion from paper outputs to direct electronic lodgement of Income Tax Returns for existing 3 rd party software products

AUSTRALIAN 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 CATS Compliance Assurance for the Tax Office Certainty and Closure for the Tax Payer High integrity business software End to End process & connectivity Trusted advisor Sound business practices ENFORCEMENT STRATEGIES Audit with/without Penalty Record Keeping Reviews Education/ Record Keeping Service Delivery (convenience, access, choice, control) Real Time Business Examinations/ Pros- ecute Drivers LTTC ROSA Inspector General Recognising good compliance behaviours Public Confidence Better targeted active compliance

AUSTRALIAN TAXATION OFFICE - UPDATE #. Compliance Assurance Through Software - CATS Value proposition Key messages: What’s in it for me? What do I do? What is different? Software & Setup Complies with Tax Office specifications Web service Integrated tax reporting Installed and customised by trusted third party to reflect - business operations - tax obligations & - appropriate business processes and practices Running the business Prompts for reconciliations etc Validations & edit checks Electronic audit trail on Ability to export an audit file if requested Tax Reporting Report generated from e-business records All changes to records logged to audit trail Additional CATS data sent with tax report ie: - integrity results or  - name & version of software - Identifier of trusted third party Processing systems Risk assessment _ incorporating CATS data Appropriate response -Reward low risk Business experience Recognition on receipt Low risk – no further revioew Concessional penalty regime Peace of mind Real or near time response How might it work

AUSTRALIAN TAXATION OFFICE - UPDATE Thank you