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Review into the ATO’s Fraud Control Management

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Telephone: (02) 8239 2111
Facsimile: (02) 8239 2100

Australian Government - Inspector-General of Taxation crest

GPO Box 551
Sydney NSW 2001

The Hon Kelly O’Dwyer MP
Minister for Revenue and Financial Services
Parliament House
Canberra ACT 2600

Dear Minister

Review into the ATO’s Fraud Control Management

I am pleased to present you with my report of the above review which was commenced at the request of the Senate Economics References Committee and examines the ATO’s management of internal and external fraud risks. This review was requested due to the events connected with Operation Elbrus and, necessarily, involves detailed examination of relevant ATO practices, procedures and structures to detect and address fraud and corruption risks.

The review has not found evidence of systemic internal fraud or corruption. The ATO, generally, has sound systems in place for managing risks of internal fraud, however, a number of areas have been identified which require improvement. Aspects of ATO’s management of external fraud risks have also been examined, complementing other initiatives aimed at addressing tax and financial crime, for example the Phoenix and Black Economy Taskforces. In this regard, certain case studies were examined such as the ATO’s response to alleged fraud in the precious metals industry as well as its management of tax evasion referrals from the community.

Overall, I have made 13 recommendations to the ATO, to all of which it has agreed in full or in part and some that it has advised have already been implemented. There is one recommendation for the Government to consider a review of the framework for interagency collaboration to combat tax crime.

I offer my thanks to taxpayers, tax practitioners, industry associations and professional bodies, academics, current and former ATO officers, legal and risk professionals as well as government agencies, such as the AFP, CDPP, AGD, ACLEI, AUSTRAC, ACIC, AIC and Department of Home Affairs, who contributed and supported this review.

Yours faithfully

SIGNED

Ali Noroozi
Inspector-General of Taxation


© Commonwealth of Australia 2018

ISBN 978-1-925504-89-7

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