Organisation: Australian Taxation Office
Job Title: Client Engagement Officer and Tax Specialist
Location: Various
Describe a time where you have had to investigate and understand a complex financial
arrangement and how you applied your taxation and/or accounting knowledge to provide
quality and timely advice to clients.
(Please limit your response to 500 words)
Currently acting as an APS6 Compliance Officer within ATO’s Private Group and High Wealth
Individual Business Line whilst a colleague is on extended leave, I have verified my ability to work
under limited direction to undertake case work of a complex nature. One such case involves a risk
review on a publicly-listed company that set up an employee remuneration trust (ERT) to provide
benefits and incentives. Through application of my high-level taxation and accounting knowledge, I
have been examining whether this arrangement is legitimate and in line with the Draft Ruling
TR2014/D1, as well as identifying associated technical issues and consequences, and providing
advice on how they can be managed. Whilst this ruling is complex, due to my exceptional technical
knowledge, in a short period of time I gained a thorough understanding of the implemented
schemes and associated technical issues.
Subsequently, I evaluated the client’s situation and determined important factors affecting the
ERT, including the fact that the employer is a publicly-listed company undertaking business for the
purpose of gaining or providing assessable income, the listed company set up two trusts; the
Option Share Trust and the Employee Share Trust, and makes one or more contributions to the
trustees of both trusts. Moreover, the trustees apply the contributions to make loans to Australian
employees to acquire options or shares of the company, or other assets from other companies in
the market, and employees are capable of benefiting under the trust. Confident in my
understanding of the case, I reviewed the client’s response to an information request letter,
determined that further clarification would be required, and requested a detailed explanation of
the actions taken in implementing the ERT. Additionally, I sourced publicly available information to
demonstrate possible links amongst the group entities or external parties. Utilising this
information in collaboration with an analysis of the client’s response, I applied my knowledge of
the Australian Accounting Standards to review the company and trust financial statements to
trace fund flows and movements in the shared capital accounts, whilst ensuring that all
transactions were recorded correctly. This enabled me to clearly identify the tax consequences for
the company, employees and the trust.
Consequently, I identified a number of complex technical issues, which were further clarified upon
liaising with the Technical Excellence Support Team. Through speaking with my colleagues, I
recognised that on top of the identified ERT risks, it was imperative that I consider other laws
applicable to the case, including Promotion Penalty Laws, and Part IV of the Anti-Avoidance
Provisions. Moreover, the client had applied a Private Binding Ruling for the ERT arrangement,
however withdrew it prior to the risk review, so I have therefore liaised with the Private Ruling
team to elicit related information that has assisted me to identify and resolve further concerns in a
timely manner. This case is thus far ongoing, however I have completed the Facts and Evidence
report, detailing steps I have undertaken, and associated legislation, case law, and tax rulings that I
have considered and applied.
