ATO XBRL Adoption XBRL 9 Australian Tax

ATO – XBRL Adoption XBRL 9 Australian Tax Office XBRL Adoption Process & Recommendations Keith Finkelde - b. REX 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

ATO – XBRL Adoption XBRL 9 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

ATO – XBRL Adoption XBRL 9 Process Overview • • ATO Business Context ATO XBRL Objectives & Findings XBRL Taxonomies XBRL ‘Componentry’ ATO Direction & Alternatives Client Software Lifecycle view & Release Kits Recommendations

ATO – XBRL Adoption XBRL 9 ATO Business Context • Individual Tax Payers (10 M) • Corporates & Others (3 M) • Super. Funds (250 K) Client ATO Agent Intermediary • Phone Calls (12 M p. a. ) • Refunds (11 M p. a. ) • BAS (3 M p. q. ) • ITR (13 M p. a. ) • Bank & Investment Accounts (>30 M p. a. ) Prepared b. REX – 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 (16 M) Revenue. Total PAYG Individual Company GST … Refunds B$185 B$17 B$33 B$30 B$23

ATO – XBRL Adoption XBRL 9 e. AS (electronic Activity Statements) Context Prepared b. REX – Keith Finkelde

• Business Context XBRL 9 • Field Definitions • Integrity Rules • e. Business Agreement ATO – XBRL Adoption e. Business Aspects • Transport Client ATO Specs e. Gateway ATO Agent Intermediary • Encryption • Envelope • Content • Workflow Dialogue (External) • Security Utilities • Validating Parsers • Mappers • Application Integration Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 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 Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 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 Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 ATO XBRL Stakeholder Involvement • • XBRL Awareness: e. AS Project Commencement: Industry Workshops: XBRL Adopter discussions: BAS Vendor Discussions: e. AS specification: Awareness & market evaluation: 2002 -2003 7/2003 8 -12/2003 Q 4/2003 Ongoing 1/2004 Ongoing • Intent was to ensure a broad based business & technology standard for interchange (including AS 4590, ISO 15022, XBRL…) - ‘fit for purpose’ with BAS Vendors Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 XBRL Taxonomy ‘Levels’ - Observed Disclosure Statements Explanatory Notes Some XBRL Current Taxonomies – to this level Big 4 Proforma /Sample/Best Practice ATO e. BAS Requirements Prepared b. REX – Keith Finkelde Facets Include: • Income / Expense • Balance Sheet • Cash Flow

ATO – XBRL Adoption XBRL 9 Reporting Reference ‘Layers’ Tax ting un cco A Legislation Alignment Aus Tax Acts Int Acct’g Standards Aus Acct’g Standards References XBRL Taxonomy Alignment SJE( Shared Juris’n Extension) IAS PFS/C&I ‘Inherits’ AUS PFS/C&I IAS PFS EDAP ATO XBRL Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 ATO Reporting Documents - Characteristics – – – – Single Event & Bulk Submission Many 3 rd Parties (Agents, Auditors, Administrators. . ) Many Corporate Structures Many Document Types Cyclic & Ad-Hoc frequencies Frequent Content Variation (New Annual Forms) Conditional Validation / Calculation

ATO – XBRL Adoption XBRL 9 A sample ATO Form – BAS Form A Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 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 Adoption XBRL 9 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 Inter. Element Calculations Qualified Inter. Element relations Inclusion of other Taxonomies. .

BAS – Some Assemblies & Calculations Activity Statement GST --------- …. PAYG IT Instal G 1 Total Sales (G 1 GST Included? ) G 2 Export Sales G 3 Oth GST-free Sales G 10 Cap Purchases G 11 Non-Cap Purchases Summary/Payment ------------ …. 1 A GST On Sales 4 PAYG Withheld 5 A PAYG IT Instalment 7 Deferred Instalment 8 A You Owe ATO sum 1 B GST on Purchases 5 B PAYG Instalment 8 B ATO Owes You PAYG IT I (Opt 2) --------- T 1 * T 2/100 OR T 1 * T 3/100 (if T 3 =/= 0) Opt 2: PAYGI Calc? T 1 PAYG Instal Income T 2 Rate T 3 Varied Rate T 11 PAYG Instal Amt T 4 Variation Reason Prepared b. REX – Keith Finkelde sum 8 A > 8 B ? 9 Pay/Refund Amount net

BAS – Some Embedded Patterns Activity Business. Statement Data GST --------- …. PAYG IT Instal Indicator G 1 Total Sales (G 1 GST Included? ) G 2 Export Sales G 3 Oth GST-free Sales G 10 Cap Purchases G 11 Non-Cap Purchases Summary/Payment ------------ …. 1 A GST On Sales 4 PAYG Withheld 5 A PAYG IT Instalment 7 Deferred Instalment 8 A You Owe ATO Transferred Amount sum Indicator Calculation T 1 * T 2/100 OR T 1 * T 3/100 (if T 3 =/= 0) 1 B GST on Purchases 5 B PAYG Instalment 8 B ATO Owes You PAYG IT I (Opt 2) --------Opt 2: PAYGI Calc? T 1 PAYG Instal Income T 2 Rate T 3 Varied Rate T 11 PAYG Instal Amt T 4 Variation Reason sum Optional Varied Rate 8 A > 8 B ? 9 Pay/Refund Amount net Optional Business Text (Domain: Change in investments 21 Current bus continuing 22…) Prepared b. REX – Keith Finkelde Decision on +ve/ -ve Net

ATO – XBRL Adoption XBRL 9 ATO XBRL – Architecture Fit to e. BAS 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)

ATO – XBRL Adoption XBRL 9 ATO XBRL – Possible Componentry Use ATO Generic Taxonomy – ‘ATO Master’ Element Label 1/2/3 GSTSales 1–Ref (‘ 8 A’), 2–ECI XML, 3 -Narrative Reference GST Act Sec 27. 1. 1 Presentation Calculation Specific Document Definition Common Sum, Net, Mult (T 11= T 1*T 2) Definition BAS (A, BC…) 2 Level: Obligation & Ob Elements Implied Transfer ( 5 A = T 11) Label Form A – GST Form Presentation Specific Sequence Calculation Specific Sum, Net, Multiply Definition Form Elements Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 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 Option 3: XBRL Form based Schema set (APRA)

ATO – XBRL Adoption XBRL 9 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

ATO – XBRL Adoption XBRL 9 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 b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 ATO XBRL Adoption – Status • • • Recommendations have been reviewed Initial e. AS 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 Tax. XML Prepared b. REX – Keith Finkelde

ATO – XBRL Adoption XBRL 9 Questions please? Prepared b. REX – Keith Finkelde