Rabobank has entered into an annual compliance agreement with the Australian Taxation Office, hoping the deal will give it greater certainty in its tax management.The ATO introduced annual compliance agreements in 2008. At the time Commissioner of Taxation Michael D'Ascenzo said ACAs were developed in response to the demand from big business for greater certainty in their dealing with the ATO and also a desire for more timely advice.D'Ascenzo said: "When the ATO does a tax audit we can go back four years, even longer in some cases, to examine issues. This can leave the taxpayer in the dark, never knowing if or when we might ring up saying there's an issue we would like to discuss."What business asked for was a regime where the ATO would review transactions as they happened and approve the tax treatment. Under an ACA the Tax Office issues a sign-off confirming the outcome of a risk assessment. The sign-off represents an agreement not to audit low-risk matters and the identification of high-risk matters that may be subject to an audit.The ATO and the company also work together to develop a risk management plan, so the company understands its risk parameters.The system is based on disclosure. The company conducts workshops with the ATO to analyse the tax position of major transactions.Tax risks revolve around major transactions, unusual transactions, application of ambiguous elements of the tax law, large cross-jurisdictional issues and tax outcomes that are inconsistent with economic outcomes.Rabobank is the twelfth company to enter into an annual compliance arrangement. A spokesperson said the decision was not the result of difficulties dealing with the ATO or adverse tax rulings in the past.