Action Differentiation Framework

How we engage with you

We tailor and differentiate the way we engage with you. We do this based on:

• size and complexity of your business
• transparency of your engagement with us
• choices and behaviours evidenced in your tax affairs
• the level of risk you exhibit.

The ADF allows us to:

• use resources efficiently - allocating them to focus areas and where attention is required
• focus on the principles of obtaining justified trust.

Engagement frequency

Under the ADF, you are grouped into populations based on your total business income (TBI).

Population and TBI	ADF	Definition	Level of engagement
Large corporate groups (Greater than $250m TBI)	Top 100	Our largest corporate groups by TBI, plus those of strategic significance	Ongoing one-to-one tailored engagement Top 100 justified trust program Top 100 GST assurance program Other compliance engagement
Large corporate groups (Greater than $250m TBI)	Top 1,000	Our largest corporate entities outside the Top 100	Periodic one-to-one tailored engagement Top 1,000 combined assurance program Top 1,000 Next Actions Program Other compliance engagement
Large corporate groups (Greater than $250m TBI)	Large risk strategy	Large market entities which are not covered by the Top 100 or Top 1,000 programs	Depending on risk factors, periodic one-to-one engagement or compliance engagement through medium PMB engagement program Other compliance engagement
Medium and emerging groups (Less than $250m TBI)	Medium and emerging risk strategy	All other PMB groups	Medium PMB engagement program Other compliance engagement

Engagement experience

The ADF guides us on how we tailor our engagement with you across a range of services and approaches.

Partnering

• We partner with you to maintain good compliance.
• If you're willing to engage with us and are transparent in your compliance, we'll partner with you to deliver our services promptly to help you meet your tax obligations.
• We'll generally adopt a less intensive approach in our interactions with you, reducing your compliance costs.

Encouraging  

• We encourage you to address our concerns.
• If you take positions relating to complex arrangements giving rise to significant tax risks, we'll request that you address our concerns.
• We encourage you to improve your level of assurance over your affairs by using our tailored services and approaches according to your circumstances.
• We'll work with you to improve future transparency and compliance.

Influencing  

• We take firm action to encourage compliance.
• If you are not transparent and consistently take high risk positions, we'll adopt –an intensive approach to ensure we address risks.
• We tailor our services and approaches to your characteristics and behaviours.
• We adopt firm approaches and exercise formal powers for information gathering until you improve your transparency and compliance.