In 2008 the Forum on Tax Administration published a Study into the Role of Tax Intermediaries (the 2008 Study) which encouraged revenue bodies to establish a relationship with large business taxpayers based on trust and co-operation; the so-called “enhanced relationship”. This report is based on a detailed study of the practical experiences of countries that have developed co-operative compliance programmes and the views of the business community. The report thoroughly reviews and updates the FTA‟s thinking about the relationship between revenue bodies and large business taxpayers in the light of these findings.
Overall the report concludes that the value of the co-operative compliance approaches has been established and it is notable how many countries have developed a programme of this kind in the past five years. The main pillars of the relationship identified in the 2008 Study remain valid but subsequent experience has shown that some additional features are also of central importance. The report sets out a revised framework for co-operative compliance.
The report discusses why the original terminology of an “enhanced relationship” is no longer an entirely accurate description of the approach. The report adopts the term “co-operative compliance”. This makes it clear that the approach is based on co-operation but with the purposes of assuring compliance, which is to say payment of the right amount of tax at the right time.