ATO – XBRL Adoption XBRL9 Prepared bREX – Keith Finkelde Australian Tax Office XBRL Adoption Process & Recommendations Keith Finkelde - bREX [email protected]

Prepared bREX – Keith Finkelde

ATO – XBRL Adoption XBRL9

Australian Tax Office

XBRL Adoption Process & Recommendations

Keith Finkelde - bREX [email protected]

+61 403 167 24

With approval of the ATO Interface Standards Team

May 2004

Full documentation available at:www.ato.gov.au/rsf

then Consultative Forums and Interface Standards

mailto:[email protected]

http://www.ato.gov.au/rsf



Presentation OverviewThe Australian Tax Office has many interchanges with clients and intermediaries

to satisfy regulatory requirements. A range of interface technologies are continuously being evaluated for suitability – including the full Web Services Stack, other XML specifications and XBRL as a candidate for financial information exchange.

This presentation covers the process used by the ATO to evaluate and progress XBRL Adoption and includes:

• Business & Regulatory Context• ATO process for stakeholder involvement.• Expected benefits to the ATO Clients and the ATO for XBRL Adoption.• Patterns of ATO interaction with clients.• Analysis of the XBRL Technical specification and available Taxonomies.• Mapping of the patterns to the available XBRL components.• Recommendations for documentation of the XBRL reference material.• Publication options for the ATO Adoption Report and ATO XBRL Taxonomies



Process Overview

• ATO Business Context• ATO XBRL Objectives & Findings• XBRL Taxonomies • XBRL ‘Componentry’• ATO Direction & Alternatives• Client Software Lifecycle view & Release Kits• Recommendations



ATO Business Context

Client

Agent

Intermediary

ATO

• Individual Tax Payers (10M)• Corporates & Others (3M)• SuperFunds (250K)

Legislation administered:•income tax •PAYG WHT and instalments •Australian Business Number (ABN) and Australian Business Register (ABR)•GST •fringe benefits tax •excise duty •Superannuation•+ other cross-agency duties

•Phone Calls (12M p.a.)•Refunds (11M p.a.)•BAS (3M p.q.)•ITR (13M p.a.)•Bank & Investment Accounts (>30M p.a.)

2002-03Client Accounts (16M)RevenueTotal B$185

PAYG B$85Individual B$17Company B$33GST B$30…

Refunds B$23



eAS (electronic Activity Statements) Context



eBusiness Aspects

Client

Agent

Intermediary

eGateway ATOeGateway

• Encryption • Envelope • Content

• Workflow Dialogue (External)

• Security Utilities• Validating Parsers• Mappers • Application Integration

• Transport ATO Specs

• Business Context • Field Definitions• Integrity Rules• eBusiness Agreement



ATO Objectives

• General – Change Program : ‘Easier, Cheaper, More

Personalised”– To align with ‘natural’ business systems– To use Industry Standards where available

• XBRL Evaluation– determine suitability for use– determine market awareness and availability– consider business and technical issues– recommend adoption path



ATO XBRL Findings

• Taxonomies– different styles & depth of declaration– considerable variation in how to record hierarchies/rules…– inconsistent use of the documentation features– few examples of non-trivial use– no method proposed for development

• Specification– specification 2.1 still maturing and subject to interpretation – large reliance on deep XML knowledge– implied meta-model and structural rules

• Tools– Vendors attempting catch-up with the specification



ATO XBRL Stakeholder Involvement• XBRL Awareness: 2002-2003• eAS Project Commencement: 7/2003• Industry Workshops: 8-12/2003• XBRL Adopter discussions: Q4/2003• BAS Vendor Discussions: Ongoing• eAS specification: 1/2004• Awareness & market evaluation: Ongoing

• Intent was to ensure a broad based business & technology standard for interchange (including AS4590, ISO15022, XBRL…) - ‘fit for purpose’ with BAS Vendors



XBRL Taxonomy ‘Levels’ - Observed

Disclosure Statements

Explanatory Notes

Facets Include:•Income / Expense

•Balance Sheet•Cash Flow

ATO eBAS Requirements

Big 4 Proforma/Sample/Best

Practice

Some XBRL Current

Taxonomies – to this level



Reporting Reference ‘Layers’

Int Acct’gStandards

Aus Acct’gStandards

Accounting

Tax Aus Tax Acts

IASPFS/C&I AUS

PFS/C&I

SJE( Shared Juris’n Extension)

References

‘Inherits’

ATO XBRL

References

IASPFS EDAP

Legislation Alignment

XBRL Taxonomy Alignment



ATO Reporting Documents - Characteristics

– Single Event & Bulk Submission – Many 3rd Parties (Agents, Auditors, Administrators..)– Many Corporate Structures– Many Document Types– Cyclic & Ad-Hoc frequencies– Frequent Content Variation (New Annual Forms)– Conditional Validation / Calculation



A sample ATO Form – BAS Form A



ATO XBRL Alternatives• Use Architecture & XBRL Reference Taxonomies

– Continue ‘Explosion’ of Available Taxonomies to the detailed level required by ATO

• Use Architecture Only– Develop ATO Taxonomy – Reference to TAX Acts– Evolve Tax Act concepts to Aus Accounting Standard

XBRL ‘Architecture’ Usage Benefits– Element Validation & Documentation Support – Calculation Validation? – Conditional Validation?– …..



ATO XBRL – ‘Componentry’/Architecture Availability

– Schema Data Dictionary Tags for Elements/Items/Tuples

– XLinks• Reference Point to Standards Document

Sections• Label Alternate ‘spellings’• Presentation Recommended Hierarchy/Assembly• Calculation InterElement Calculations• Definition Qualified InterElement relations

– Namespaces Inclusion of other Taxonomies..

BAS – Some Assemblies & Calculations

PAYG IT Instal

Activity Statement

Summary/Payment-----------------------1A GST On Sales4 PAYG Withheld5A PAYG IT Instalment7 Deferred Instalment8A You Owe ATO

1B GST on Purchases5B PAYG Instalment8B ATO Owes You

8A > 8B ?9 Pay/Refund Amount

sum

sum

net

GST-----------------G1 Total Sales(G1 GST Included?)G2 Export SalesG3 Oth GST-free SalesG10 Cap PurchasesG11 Non-Cap Purchases

PAYG IT I (Opt2)-----------------Opt2: PAYGI Calc?T1 PAYG Instal IncomeT2 RateT3 Varied RateT11 PAYG Instal AmtT4 Variation Reason

….

….

T1 * T2/100OR T1 * T3/100 (if T3 =/= 0)

BAS – Some Embedded Patterns

PAYG IT Instal

Activity Statement

Summary/Payment-----------------------1A GST On Sales4 PAYG Withheld5A PAYG IT Instalment7 Deferred Instalment8A You Owe ATO

1B GST on Purchases5B PAYG Instalment8B ATO Owes You

8A > 8B ?9 Pay/Refund Amount

sum

sum

net

GST-----------------G1 Total Sales(G1 GST Included?)G2 Export SalesG3 Oth GST-free SalesG10 Cap PurchasesG11 Non-Cap Purchases

PAYG IT I (Opt2)-----------------Opt2: PAYGI Calc?T1 PAYG Instal IncomeT2 RateT3 Varied RateT11 PAYG Instal AmtT4 Variation Reason

….

….

T1 * T2/100OR T1 * T3/100 (if T3 =/= 0)

Indicator

Business Data

Indicator

Calculation

Transferred Amount

Optional Varied Rate

Decision on +ve/-ve Net

Optional Business Text (Domain:

Change in investments 21Current bus continuing 22…)



ATO XBRL – Architecture Fit to eBAS Patterns

– Schema Business Data, Indicators, Rates– XLinks

• Reference Legislation ‘Pointers’• Label Full Text / Other Alias• Presentation Hierarchy of Obligation/Blocks• Calculation Summing/Multiply/Netting…• Definition Alias-Essence (Implicit Transfer)



Taxonomy – ‘ATO Master’

ElementLabel 1/2/3

ATO Generic

Reference

BAS (A,BC…)

Specific Document Definition

ATO XBRL – Possible Componentry Use

Calculation

Presentation

Definition

1–Ref (‘8A’),2–ECI XML,3-Narrative

GST Act Sec 27.1.1GSTSales

Specific Sequence

Common Sum, Net, Mult (T11= T1*T2)

Implied Transfer ( 5A = T11)

Label Form A – GST Form

Definition Form Elements

Calculation Specific Sum, Net, Multiply

Presentation

2 Level: Obligation & Ob Elements



ATO XBRL – Schema Design Options

We have choice, either being a generic Schemaincorporating logic or an XBRL style schema set.

Option 1: Generic Schema + XBRL taxonomy

Option 2: Vanilla XBRL Schema set

‘XBRL Style’ Path

Schema Path

Option 3: XBRL Form based Schema set (APRA)



Some Client End Process Paths

ATO

Assemble … Send to ATO

ATO XBRL AS ‘Pack’

Specification/Design

Build / Test

Deploy / Configure

Runtime

Life Cycle View of ATO Changes

Write Specs

Code

Release Code

Generate Message

AppValidate Message



ATO XBRL Adoption – Recommendation Summary

• Develop a method for identifying Message Models and then transformation to technology

• Client Interchanges will be hybrid XML + XBRL• Full compliance with XBRL item/taxonomy structure• Develop Stand-Alone XBRL Taxonomy of ATO Concepts• Use XBRL data types• Use XLink – Reference, Label, Presentation for

documentation purposes• Use market supplied XBRL Taxonomy & Instance editors



ATO XBRL Adoption – Status

• Recommendations have been reviewed• Initial eAS release has used full XML version• ATO XBRL Taxonomy prepared and being evaluated• XBRL Tools to be evaluated and selected• Ongoing review of XBRL demand from client/vendor base• Other ATO needs (eg Corporate tax filings) to be modelled

for XBRL consideration • Continued review of appropriate XML/WS standards for

adoption - including TaxXML



Questions please?