🔍 ATO Settlement Activities with Public and Multinational Businesses: 2023–24 Overview

The ATO continues to leverage settlements as a key part of its dispute resolution strategy, focusing on fairness, resource efficiency, and securing tax revenue.

📊 Key 2023–24 Highlights:

• 💼 Cases Settled: 29 cases involving 67 public and multinational business entities

• 💰 Revenue Secured: $1.8 billion in tax revenue

• 🔒 Future Compliance: Over 75% of settlements included obligations for future compliance, ensuring long-term certainty for businesses and government

🌏 Global Profit-Shifting Risks:

• Accounted for 65% of cases, focusing on complex, fact-dependent disputes

• The ATO often use settlements to “lock in” future pricing arrangements, reducing the need for future audits or litigation

⚖️ Settlement Variance:

• 31% variance, securing 69% of disputed amounts under the ATO’s original position— this broadly aligns with historical averages

⏳ When Settlements Occurred:

• 78% finalised before or during audits

• Remaining cases resolved at objection or litigation stages

🔒 Transparency and Oversight:

• A reminder that significant settlements are reviewed by former Federal Court judges. These independent reviews found all 13 significant settlements reviewed in 2023–24 to be fair and reasonable

• Relevantly, settlement information can be shared with international treaty partners to promote global tax compliance. Taxpayers need to be aware of this. (It hasn’t always occurred.)

📋 Ongoing Monitoring:

• The ATO continues to use the Reportable Tax Position (RTP) schedule as a means for taxpayers to disclose compliance

• Top 100 and Top 1000 taxpayers continue to be monitored as part of broader ATO engagement strategies The ATO reports that by securing 💵 significant revenue, influencing future tax behaviour, and maintaining 🔎 transparency, it reinforces its role as a fair and effective tax administrator.

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