The annual compliance arrangement covers Integral Energy’s goods and services tax (GST) obligations. The ATO announced earlier this month that a similar arrangement had been signed with financial services firm ANZ.

Annual compliance arrangements are designed primarily for large corporates and provide an open and transparent approach to tax compliance requiring a commitment to sound corporate governance risk management and compliance.

Tax Commissioner Michael D’Ascenzo said he was pleased to sign the arrangement with Integral Energy.

“Annual compliance arrangements offer an innovative way forward for business to work with the tax office with an open and transparent approach to manage tax risk more effectively. These arrangements provide tangible benefits and methods to achieve real time compliance and greater certainty for taxpayers about their GST obligations," he commented.

Integral Energy is one of Australia's largest state-owned energy corporations with an annual turnover of approximately AUD1.8bn (USD1.2bn) and over 300,000 GST transactions per month. It employs nearly 2,800 people.

Integral Energy's Chief Executive Officer Vince Graham said the new agreement built on five years work with the tax office on GST compliance.

"This arrangement is a reflection of our strong commitment to effective governance and tax risk management,” Graham said.

“It also sends a positive message to our customers that our processes, systems, policies and controls support our ability to meet ongoing tax responsibilities," he added.

The GST annual compliance arrangement between Integral Energy and the Tax Office is effective from November 1, and will run for an initial trial period of three years.