ATO – XBRL Adoption
XBRL9
Australian Tax Office
XBRL Adoption Process & Recommendations
Keith Finkelde - bREX
keith.finkelde@brex.com.au
+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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
Presentation Overview
The 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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
Process Overview
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ATO Business Context
ATO XBRL Objectives & Findings
XBRL Taxonomies
XBRL ‘Componentry’
ATO Direction & Alternatives
Client Software Lifecycle view & Release Kits
Recommendations
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO Business Context
• Individual Tax Payers (10M)
• Corporates & Others (3M)
• SuperFunds (250K)
Client
ATO
Agent
Intermediary
•Phone Calls (12M p.a.)
•Refunds (11M p.a.)
•BAS (3M p.q.)
•ITR (13M p.a.)
•Bank & Investment Accounts (>30M p.a.)
Prepared bREX – Keith Finkelde
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
2002-03
Client Accounts (16M)
RevenueTotal
PAYG
Individual
Company
GST
…
Refunds
B$185
B$85
B$17
B$33
B$30
B$23
ATO – XBRL Adoption
XBRL9
eAS (electronic Activity Statements) Context
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
• Business Context
XBRL9
• Field Definitions
• Integrity Rules
• eBusiness Agreement
eBusiness Aspects
• Transport
Client
ATO Specs
eGateway
eGateway
ATO
Agent
Intermediary
• Encryption
• Envelope
• Content
• Workflow Dialogue
(External)
• Security Utilities
• Validating Parsers
• Mappers
• Application Integration
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO Objectives
• General
– Change Program : ‘Easier, Cheaper, More
Personalised”
– To align with ‘natural’ business systems
– To use Industry Standards where available
• XBRL Evaluation
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determine suitability for use
determine market awareness and availability
consider business and technical issues
recommend adoption path
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL Findings
• Taxonomies
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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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL Stakeholder Involvement
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XBRL Awareness:
eAS Project Commencement:
Industry Workshops:
XBRL Adopter discussions:
BAS Vendor Discussions:
eAS specification:
Awareness & market evaluation:
2002-2003
7/2003
8-12/2003
Q4/2003
Ongoing
1/2004
Ongoing
• Intent was to ensure a broad based business &
technology standard for interchange (including
AS4590, ISO15022, XBRL…) - ‘fit for purpose’ with
BAS Vendors
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
XBRL Taxonomy ‘Levels’ - Observed
Disclosure
Statements
Explanatory
Notes
Some XBRL
Current
Taxonomies – to
this level
Big 4 Proforma
/Sample/Best
Practice
ATO eBAS
Requirements
Prepared bREX – Keith Finkelde
Facets Include:
•Income / Expense
•Balance Sheet
•Cash Flow
ATO – XBRL Adoption
XBRL9
Reporting Reference ‘Layers’
Aus Tax Acts
Int Acct’g
Standards
Legislation
Alignment
Aus Acct’g
Standards
References
References
XBRL Taxonomy
Alignment
SJE( Shared Juris’n Extension)
IAS
PFS/C&I
‘Inherits’
AUS
PFS/C&I
IAS
PFS EDAP
ATO
XBRL
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO Reporting Documents - Characteristics
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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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
A sample ATO Form – BAS Form A
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
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
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Element Validation & Documentation Support
Calculation Validation?
Conditional Validation?
…..
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL – ‘Componentry’/Architecture Availability
– Schema
Data Dictionary Tags for Elements/Items/Tuples
– XLinks
• Reference
• Label
• Presentation
• Calculation
• Definition
– Namespaces
Point to Standards Document Sections
Alternate ‘spellings’
Recommended Hierarchy/Assembly
InterElement Calculations
Qualified InterElement relations
Inclusion of other Taxonomies..
Prepared bREX – Keith Finkelde
BAS – Some Assemblies & Calculations
Activity
Statement
GST
-----------------
….
PAYG IT Instal
G1 Total Sales
(G1 GST Included?)
G2 Export Sales
G3 Oth GST-free Sales
G10 Cap Purchases
G11 Non-Cap Purchases
Summary/Payment
-----------------------
….
1A GST On Sales
4 PAYG Withheld
5A PAYG IT Instalment
7 Deferred Instalment
8A You Owe ATO
sum
1B GST on Purchases
5B PAYG Instalment
8B ATO Owes You
PAYG IT I (Opt2)
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T1 * T2/100
OR T1 * T3/100 (if T3 =/= 0)
Opt2: PAYGI Calc?
T1 PAYG Instal Income
T2 Rate
T3 Varied Rate
T11 PAYG Instal Amt
T4 Variation Reason
sum
8A > 8B ?
9 Pay/Refund Amount
net
BAS – Some Embedded Patterns
Activity
BusinessStatement
Data
GST
-----------------
….
PAYG
IT Instal
Indicator
G1 Total Sales
(G1 GST Included?)
G2 Export Sales
G3 Oth GST-free Sales
G10 Cap Purchases
G11 Non-Cap Purchases
Summary/Payment
-----------------------
….
1A GST On Sales
4 PAYG Withheld
5A PAYG IT Instalment
7 Deferred Instalment
8A You Owe ATO
Transferred
Amount
sum
Indicator
Calculation
T1 * T2/100
OR T1 * T3/100 (if T3 =/= 0)
1B GST on Purchases
5B PAYG Instalment
8B ATO Owes You
PAYG IT I (Opt2)
----------------Opt2: PAYGI Calc?
T1 PAYG Instal Income
T2 Rate
T3 Varied Rate
T11 PAYG Instal Amt
T4 Variation Reason
sum
Optional
Varied Rate
8A > 8B ?
9 Pay/Refund Amount
net
Optional Business
Text (Domain:
Change in investments 21
Current bus continuing 22…)
Decision on
+ve/-ve Net
ATO – XBRL Adoption
XBRL9
ATO XBRL – Architecture Fit to eBAS Patterns
– Schema
– XLinks
• Reference
• Label
• Presentation
• Calculation
• Definition
Business Data, Indicators, Rates
Legislation ‘Pointers’
Full Text / Other Alias
Hierarchy of Obligation/Blocks
Summing/Multiply/Netting…
Alias-Essence (Implicit Transfer)
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL – Possible Componentry Use
ATO Generic
Taxonomy – ‘ATO Master’
Element
GSTSales
BAS
(A,BC…)
Specific Document Definition
Label 1/2/3
1–Ref (‘8A’),2–ECI XML,3-Narrative
Reference
GST Act Sec 27.1.1
Presentation
2 Level: Obligation & Ob Elements
Calculation
Common Sum, Net, Mult (T11= T1*T2)
Definition
Implied Transfer ( 5A = T11)
Label
Form A – GST Form
Presentation
Specific Sequence
Calculation
Specific Sum, Net, Multiply
Definition
Form Elements
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL – Schema Design Options
We have choice, either being a generic Schema
incorporating logic or an XBRL style schema set.
Schema Path
‘XBRL Style’ Path
Option 1: Generic Schema
+ XBRL taxonomy
Option 2: Vanilla XBRL
Schema set
Prepared bREX – Keith Finkelde
Option 3: XBRL Form
based Schema set (APRA)
ATO – XBRL Adoption
XBRL9
Some Client End Process Paths
Life Cycle View of ATO Changes
ATO
Specification/Design
ATO XBRL AS
‘Pack’
Write
Specs
Build / Test
Code
Deploy / Configure
Release
Code
Runtime
App
Generate
Message
Validate
Message
Assemble …
Send to ATO
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
ATO XBRL Adoption – Status
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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
Prepared bREX – Keith Finkelde
ATO – XBRL Adoption
XBRL9
Questions please?
Prepared bREX – Keith Finkelde