Appendix 3: Public advice and dispute management
The following tables provide statistics on how the ATO assists people to understand their tax and superannuation obligations, and how we work with people who disagree with our assessments.
Public advice
The ATO provides advice in public rulings and a range of other product types as shown in the next table. Timeliness of our public advice (for public rulings) is presented in the subsequent table.
Product |
2016–17 |
2017–18 |
2018–19 |
---|---|---|---|
Total public rulings (including significant addenda)(a) |
73 |
64 |
54 |
Practical compliance guidelines (including significant updates)(b) |
20 |
13 |
20 |
Taxpayer alerts |
11 |
1 |
4 |
Decision impact statements |
11 |
10 |
7 |
Synthesised texts of the Multilateral Instrument and Australian tax treaties |
na |
na |
6 |
NOTES
(a) Includes both draft and final rulings, excludes class and product rulings.
(b) Includes both draft and final guidelines.
Product |
Number |
0–6 months |
7–12 months |
Over 12 months |
---|---|---|---|---|
Taxation rulings and determinations(b) |
10 |
3 |
5 |
2 |
Law companion rulings |
6 |
4 |
1 |
1 |
Annual rulings |
9 |
All published within tax time requirements |
All published within tax time requirements |
All published within tax time requirements |
NOTES
(a) Timeliness refers to the time taken to finalise following the end of the public consultation period.
(b) Excludes class and product rulings.
Activity |
2016–17 |
2017–18 |
2018–19 |
---|---|---|---|
Effectiveness of public advice issued. In particular, in 2018–19, responses showed:
|
The external survey results are positive overall. The perceptions of our public advice and guidance improved in nearly all areas compared with 2015–16. |
The external survey results are positive overall, showing that our public advice and guidance is meeting the needs of our clients. |
Responses for 2018–19 indicate overall a similar level of satisfaction to that reported for 2017–18, with a marked improvement in the ability of our clients to find the guidance they needed. |
Dispute management
The next table presents information on the numbers and types of our dispute cases.
Cases |
2016–17 |
2017–18 |
2018–19 |
---|---|---|---|
Returns lodged |
35,540,854 |
36,572,123 |
37,628,879 |
Adjustments arising from audits |
253,000 |
361,107 |
530,508(a) |
Disputed cases resolved |
|||
- objections (b) |
24,490 |
24,350 |
26,276 |
- settlements |
648 |
673 |
635 |
- litigations |
437(c) |
326 |
314 |
- independent reviews |
12 |
16 |
13 |
Cases lodged to courts/tribunals |
456 |
478 |
441 |
Cases resolved prior to court hearing |
296 |
224 |
212 |
Cases proceeded to decision |
141 |
102 |
102 |
Objections to new Part IVC litigation matters(d) |
15.1 per thousand |
15.8 per thousand |
14.1 per thousand |
Number of test case litigations finalised |
2 |
5 |
7 |
NOTES
(a) Increased use of advanced analytics and automation has led to increased review and audit activities for individuals not in business.
(b) The increase in objections can in part be attributed to taxpayers objecting to their own self-assessments.
(c) Previously published in the 2016–17 annual report as 408.
(d) Previously reported as the proportion of objections that result in litigation.
Settlements
Settlement cases reviewed under our Independent Assurance of Settlements Program for 2018–19 are shown in the next table. Independent assurers review settlements only after they have been finalised. As a result, settlements finalised in the second half of any financial year will likely be reviewed by an independent assurer in the following financial year.
Financial year of settlement |
|
ATO |
Settled position |
|
|
---|---|---|---|---|---|
2016–17 |
1 |
111.5 |
87.0 |
24.5 |
22 |
2017–18 |
5 |
225.0 |
83.9 |
141.2 |
63 |
2018–19 |
10 |
3,109.9 |
1,569.2 |
1,540.7 |
50 |
TOTAL |
16 |
3,446.4 |
1,740.1 |
1,706.4 |
50 |
NOTE
(a) Totals may differ from the sum of components due to rounding.
The next two tables provide more detail on settlements that occurred during 2018–19.
Stage |
|
|
ATO |
Settled position |
|
|
---|---|---|---|---|---|---|
Pre-audit |
211 |
33% |
329.5 |
250.5 |
79.0 |
24% |
Audit |
206 |
32% |
3,146.8 |
1,693.7 |
1,453.1 |
46% |
Objection |
115 |
18% |
369.9 |
183.9 |
186.0 |
50% |
AAT |
92 |
15% |
31.8 |
15.7 |
16.1 |
51% |
Federal Court |
11 |
2% |
48.9 |
16.0 |
32.9 |
67% |
High Court |
0 |
0% |
0.0 |
0.0 |
0.0 |
0% |
TOTAL |
635 |
100% |
3,926.9 |
2,159.9 |
1,767.1 |
45% |
NOTE
(a) Totals may differ from the sum of components due to rounding.
Client group |
|
|
ATO |
Settled position |
|
|
---|---|---|---|---|---|---|
Individuals(b) |
36 |
6% |
8.1 |
4.7 |
3.4 |
42% |
Small business |
171 |
27% |
159.9 |
93.5 |
66.5 |
42% |
Privately owned and wealthy groups |
254 |
40% |
232.1 |
124.2 |
107.9 |
46% |
Public and multinational businesses |
98 |
15% |
3,517.5 |
1,931.4 |
1,586.1 |
45% |
Not-for-profit organisations(c) |
1 |
0% |
0.0 |
0.1 |
-0.1 |
0% |
Superannuation funds |
75 |
12% |
9.2 |
6.0 |
3.2 |
35% |
TOTAL |
635 |
100% |
3,926.9 |
2,159.9 |
1,767.1 |
45% |
NOTES
(a) Totals may differ from the sum of components due to rounding.
(b) The client group Individuals does not include those who are in business – for example, sole traders.
(c) The client group Not-for-profit organisations includes government entities.
Visit
https://www.transparency.gov.au/annual-reports/australian-taxation-office/reporting-year/2018-2019-60