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20 Dec 07 Forward Compliance Arrangements

The ATO has published advice about its Forward Compliance Arrangements (FCA). The FCA is an incentive based approach to managing compliance for all tax obligations, and provides a viable alternative to traditional compliance approaches. It is a voluntary arrangement between a large business and the ATO which sets up an agreed way of working together in the future. In particular, the FCA is a commitment in writing by large business and the ATO to make a joint effort to focus on complying with current tax requirements and anticipate future tax needs, especially when major transactions affecting tax are likely.

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