Industry capability assessment

A.9.1 In the 2012 capability assessment, results were also compiled in respect of officers' understanding of taxpayers' business environment, reproduced below.

Figure - Taxpayer Business Environment — LB&I

Column graphs showing information about LB&I officers' understanding of taxpayers' business environment.

Source: ATO LB&I Capability assessment results 2012 — Taxpayer Business Environment.

View image enlarged

Key competencies/behaviour indicators

Taxpayer business environment

  • the Risk Hypothesis
  • the 12 High Level Questions
  • the analysis of aspects of a tax return
  • the analysis of financial statements
  • good tax corporate governance

Source: ATO LB&I Capability assessment results 2012 — Taxpayer Business Environment.

Finance and accounting capability assessment

A.9.2 The capability assessment in respect of finance and accounting are reproduced below.

Figure - 2010 Finance and accounting capability assessment

Column graph showing the capability assessment in respect of finance and accounting for 2010.

Source: ATO Capability Assessment 2010.

View image enlarged

Figure - 2011 Finance and accounting capability assessment

Column graph showing the capability assessment in respect of finance and accounting for 2011.

Source: ATO Capability Assessment 2011.

View image enlarged

Figure - 2012 Finance and accounting capability assessment

Column graph showing the capability assessment in respect of finance and accounting for 2012.

Column graph showing the capability assessment in respect of finance and accounting for 2012.

Source: ATO Capability Assessment 2012.

Key competencies/behaviour indicators

Capital Gains Tax

  • what causes a CGT event to occur
  • what constitutes an asset for CGT purposes
  • what is needed to calculate a Capital Gain or Loss
  • what exemptions or rollovers are available in CGT legislation
  • current or emerging issues in Capital Gains tax
  • the interaction between CGT and other areas of tax law

Consolidations

  • the general concepts, terminology and core rules behind Consolidations
  • the membership rules that underpin the Consolidations regime
  • rules around entries and exits
  • rules for the calculation of an ACA
  • the concepts surrounding MECs
  • current or emerging issues in Consolidations, including issues such as asset characterisations and investments in associates
  • the interaction between Consolidations and other areas of tax law

Financing/Accounting

  • financial statements including Profit and Loss and Balance Sheets
  • Tax Effect Accounting and AIFRS
  • the concepts of the TOFA legislation
  • the interaction between Financial Statements and tax returns
  • current or emerging issues in financing, including products such as hybrids and debt vs. equity
  • the interaction between financing and other areas of tax law

Internationals

  • the concepts of residency and source
  • the concepts included in Double Tax Agreements
  • the concept and operations of Thin Capitalisation
  • the concepts behind a Permanent Establishment
  • the operation of the Transfer Pricing regime
  • the interaction between tax planning and global tax avoidance issues
  • the CFC rules
  • current or emerging issues in internationals
  • the interaction between international matters and domestic tax law

Source: ATO Capability Assessment 2012 — Core Tax Technical Skills.

Relationship management and communication capability assessment

A.9.3 Beginning in 2011, LB&I started measuring officers' capability in respect of client relationship management which includes competence, confidence, negotiation, conflict resolution, communication, influencing and relationship management. The capability assessment outcomes for 2011 are outlined below.

In 2011, 7 Client Relationship Management skills were assessed — Overall competence, Confidence, Negotiation, Conflict resolution, Communication, Influencing and Relationship Management. The results for Overall competence across sites are displayed below:

Overall competence

  • 13% of the ratings were recorded at Very High.
  • 45% of the ratings were recorded at High.
  • 38% of the ratings were recorded at Average.
  • 4% of the ratings were recorded at Low.
  • 0% of the ratings were recorded at Negligible.

Figure - 2011 client relationship management — overall competence

Column graph showing the overall competence of 2011 client relationship management.

Source: ATO LB&I capability assessment 2011.

View image enlarged

Figure - 2012 Client relationship/situation management LB&I

Column graph giving information about 2012 Client relationship/situation management LB&I.

Source: ATO LB&I capability assessment 2012 — relationship/situational management section.

View image enlarged

A.9.4 The rating scale for both 2011 and 2012 in respect of these client relationship management skills are reproduced below.

Figure - Ratings scale — relationship/situational management and leadership sections
6 = Always The officer always displays this behaviour indicator.
5 = Most times The officer most times displays this behaviour indicator.
4 = Sometimes The officer sometimes displays this behaviour indicator.
3 = Rarely The officer rarely displays this behaviour indicator.
2 = Never The officer never displays this behaviour indicator.
1 = Unable to rate The officer has not been exposed to work in this criterion.

Source: ATO LB&I capability assessment 2012 — relationship/situational management section.

Key competencies/behaviour indicators

General competence

  • Showing an interest in what others have to say; acknowledging their perspectives.
  • Operating in a professional manner when representing the Tax Office.
  • Treating people fairly and equitably and being transparent in dealings with them.

Displaying confidence

  • Listening when own ideas are challenged and justifying own position and actions.
  • Constructively challenging issues; discussing alternatives to find a way forward.
  • Taking a decisive course of action.

Negotiating persuasively

  • Discussing issues credibly and thoughtfully without becoming personal or aggressive.
  • Anticipating and identifying other people's expectations and concerns.
  • Commencing negotiations with a clear understanding of the desired outcomes.

Managing conflict

  • Using appropriate strategies to resolve conflicts and address concerns quickly.
  • Using appropriate interpersonal styles and methods to reduce tension or conflict.
  • Finding agreement on issues and following through on implementation.

Communicating effectively

  • Focusing on clearly communicating key points.
  • Limiting the use of jargon and abbreviations; using appropriate language.
  • Presenting messages confidently and selecting the appropriate medium.

Demonstrating influence

  • Presenting persuasive alternative views.
  • Encouraging relevant stakeholders in supporting the position.
  • Identifying and proposing solutions that benefit all parties involved in a situation.

Managing relationships

  • Building and sustaining relationships; liaising with a range of stakeholders.
  • Anticipating clients' needs and providing courteous, prompt and professional service.
  • Develops and maintains a network with others internally and externally.

Making appropriate decisions

  • Making critical and timely decisions in difficult or ambiguous situations.
  • Taking charge of a group if/ when necessary (eg to facilitate change).
  • Making appropriate decisions when required.

Source: ATO LB&I capability assessment 2012 — relationship/situational management section.