October 30, 2012

Alcoa first to sign ATO annual compliance arrangement on four taxes

Alcoa of Australia Limited (Alcoa) is the first company in Australia to enter into an Annual Compliance Arrangement (ACA) with the Australian Tax Office (ATO) on four different ATO products: income tax, fringe benefits tax, GST and Excise – fuel tax credits. This move is a clear demonstration of the ATO’s recognition of Alcoa’s commitment to best practice and transparency around tax governance and compliance procedures.
The ACA was introduced by the ATO in 2008 to encourage companies to self disclose issues, thereby increasing ATO efficiencies and improving company compliance standards. The tool gives the tax office real-time access to company transactions as they occur and significantly reduces the need for resource intensive audits and risk reviews.
“Alcoa is a significant tax payer in Australia. Achieving this arrangement on four taxes is a great example of our commitment to good corporate governance,” said Alcoa’s Managing Director Alan Cransberg.
“We welcome the ATO’s scrutiny and are open to review of our corporate compliance measures. This sends a strong message to government, and to any other organisation that deals with us, that we are doing the right thing as an Australian company. This commitment by Alcoa also sends a strong message to our own employees by reinforcing that we are an open and values based company.
“Other large organisations have entered into an ACA but Alcoa is the first to sign on four separate taxes, and the first company in Western Australia to enter into any kind of ACA.”
The ATO’s Commissioner of Taxation, Michael D’Ascenzo and Alcoa’s Finance and Business Services Director, Tom Adams signed the ACA at an official ceremony today.
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Media contact: Nichola Holgate 0409 036 948; nichola.holgate@alcoa.com.au