TERMS OF REFERENCE

Through the IGTO’s tax complaint investigation service, it has been observed that there appears to be a lack of clarity about how issues are raised for CRP consideration and whether the processes underlying consideration of these matters are sufficiently robust to take into account consideration of relevant factors and expert stakeholder views. This is important as decisions of the Commissioner in relation to the CRP are not subject to external merits or judicial review.^[1]Exercises of the CRP are effected by way of disallowable legislative instruments which must be tabled for a set period of time in Parliament and is subject to veto or disallowance.

The IGTO’s investigation will examine:

1. the processes by which (potential) CRP matters are identified, including the processes by which the ATO assures itself that it has sought to adopt a purposive interpretation of the law;
2. the processes by which (potential) CRP matters are considered, including the application of the criteria in Division 370 of Schedule 1 to the Taxation Administration Act 1953;
3. the regulatory and compliance impact (including the frequency and circumstances) of the use of the CRP^[2]For example, Is the CRP providing greater certainty, reducing risks for entities and promoting confidence in the taxation system – as per the Regulation impact on business statement? The Remedial … Continue reading;
4. whether the ATO’s systems and processes to receive, consider and determine CRPs are operating effectively, efficiently and with timeliness and transparency taking into account all relevant factors and stakeholder feedback;
5. how consideration and decisions in relation to the CRP are recorded and communicated, both internally and externally;
6. whether processes in relation to the CRP are well-known and well-understood across the tax practitioner community and within the ATO;
7. how the ATO engages with stakeholders as part of its CRP consideration; and
8. any other relevant matters that arise during the course of the IGTO investigation or as identified by stakeholders in submissions.

The IGTO welcomes feedback from stakeholders – including professional and industry bodies, tax practitioners and taxpayers – on any concerns they have in relation to the CRP processes and potential improvements that may be implemented.

How to lodge a submission

The closing date for submissions is 28 February 2022. Submissions may be lodged by telephone (02 8239 2111) or be sent by: