Overview of the survey
We conducted the survey to understand our clients' experience from their involvement in the Top 500 program. We sent a questionnaire to the Top 500 participants and their advisers who we had engaged with.
Clients responded to 21% of survey questionnaires we issued. This is a 15-point decrease compared to the 2022 (36%). We note that some advisers may have responded using one questionnaire on behalf of multiple clients.
The results showed that 58% of participants were satisfied with the program, while 19% were neutral and 23% were dissatisfied. Satisfaction was significantly lower compared with last year’s result where 72% of respondents were satisfied, 18% neutral and 10% dissatisfied. This represents a 14-point decrease in overall satisfaction.
Figure 1: Overall satisfaction responses
Key insights
The key insights are:
- Clients have been regularly treated in a professional, courteous and respectful manner during their interactions with us.
- Clients have identified that discussing their issues with us helps to resolve them. This could be due to client’s perception that we listen to them.
- Clients believe that we have a better understanding of their individual circumstances than in previous years.
- It appears that, as a result of our engagements, clients are more likely to consider the tax implications of future transactions.
- Clients are concerned about the cost of participation in the program.
- We should be mindful about the regularity of communications provided about the progress of the engagement, with requests for information needing to be more tailored to the business or income producing activities.
- We need to ensure that future engagements encourage clients to invest more in improving governance over their tax affairs.
Tax governance
Survey results on tax governance
Participants responded to questions regarding tax governance for the Top 500 program as follows.
I understand how effective tax governance supports me to meet my tax obligations:
- 76% agree
- 10% neutral
- 14% disagree.
The engagement encouraged me to invest more in improving governance over my tax affairs:
- 55% agree
- 21% neutral
- 24% disagree.
The engagement has provided me with feedback and guidance about the effectiveness of my tax governance and any tax risks:
- 60% agree
- 16% neutral
- 24% disagree.
Figure 2: Graph showing tax governance responses
Client engagement
Survey results on client engagement
Participants rated our client engagement as follows.
The level of communication you received about the objectives of the Top 500 program:
- 79% satisfied
- 10% neutral
- 10% dissatisfied.
This question has percentages that don't add to 100% when rounded to the nearest whole number.
The level of understanding of your group structure:
- 88% satisfied
- 2% neutral
- 10% dissatisfied.
The level of understanding and working knowledge of your business and/or other income producing activities:
- 78% satisfied
- 10% neutral
- 12% dissatisfied.
The level of knowledge of the tax law relevant to any issues raised in the engagement:
- 79% satisfied
- 9% neutral
- 12% dissatisfied.
The extent to which requests for information are tailored to business and/or income producing activities:
- 64% satisfied
- 14% neutral
- 22% dissatisfied.
The amount of time provided for you to respond to requests for information:
- 74% satisfied
- 7% neutral
- 19% dissatisfied.
The regularity of communication provided about the progress of the engagement:
- 59% satisfied
- 10% neutral
- 31% dissatisfied.
The extent to which you were treated in a professional, courteous and respectful manner:
- 95% satisfied
- 2% neutral
- 3% dissatisfied.
Figure 3: Graph showing client engagement responses
What clients said
Clients have said:
- The ATO team have been professional, courteous and very helpful. It's great to have people that understand the business and are always willing to assist.
- ATO staff have been very professional and patient.
- ATO staff have been very accommodating and understanding of resource constraints.
- I would just like to again comment on our team, through very unusual business times including covid impacts they worked collaboratively with the business on achieving what they needed to do in a manner that minimised any disruption, gave ample time for responses and provided relevant feedback.
- Yes – good program. Keep it going – getting to justified trust seems difficult and a large tick the box exercise – maybe this could be made easier. But frankly don't mind meeting the ATO – been a good experience so far, and the auditors/ review folk been good to talk to. And best of all pragmatic!
- Our experience thus far have been OK and the team members respectful in the conduct of the regular reviews undertaken.
- Our experience with the Top 500 program has been disappointing and frustrating. The ATO has a long way to go to re-establish confidence in the integrity of the program and its capability. As a private group we remain committed to working co-operatively with the ATO on the Top 500 program. I just wish that the ATO would step up and do the same with us.
- It would be more beneficial if it was clearer what the ATO wanted, i.e. if you provided a template for Tax Corporate Governance documents that would be more helpful.
- As part of this program ATO should look to build a better rapport and value perspective with the taxpayer because the engagement requires the taxpayer to allocate significant time from the resources at various different levels of the organisation.
- We would really like to be working in an environment where we are engaging with the ATO team in 'real time' on issues that affect the current year rather than 3 years ago. This would also help the ATO achieve their objectives more effectively.
- The question above about 'costs savings' is completely misconceived and betrays the ATO's lack of understanding (or care) of the cost of these programs for taxpayers. I estimate the average Top 500 taxpayer has incurred $50–$100k+ of advisor cost for each review, plus countless internal resource hours. If ATO devoted just 10% of the Top 500 resource to properly educating the community about the already high level of compliance by large taxpayers, it would have a more positive impact on the propensity of all taxpayers to comply.
- Tax Office can no longer be trusted and abuse procedural process under the purported banner of the Top 500 program.
- Based on the 'glacial' speed in which these 'Top 500' reviews are being conducted, you will never achieve 'real-time' engagement. The ATO will fall further and further behind to the extent you will need to skip years because you will be 'timed out' on amendment period. An abbreviated questionnaire needs to be developed by the ATO requiring all Top 500 to advise, annually, such things as:
- New Division 7A Loans made.
- Properties or businesses purchased or sold.
- Any other CGT events.
- Related party transactions above a certain threshold.
- Overseas transactions.
- Based on the above responses, your review team could choose to follow up (or not) certain transactions on a sample basis for their tax compliance. The benefit being, the ATO won't check everything and take forever! And the client will have no idea what is going to be checked year to year, ensuring overall better tax compliance.
- It has been very one way. We have provided a lot of information at short deadlines and yet the ATO have missed all of their deadlines. The ATO wants to conduct systems audits on businesses, but I do not believe they have the resources or skills to carry this out.