The Inspector-General of Taxation and Tax Ombudsman (IGTO) has welcomed the Government’s decision to grant her new powers in response to the Royal Commission into the Robodebt Scheme. The Bill passed on Wednesday directly addresses two critical failings of oversight by:
- creating a duty for the Australian Tax Office (ATO) to assist with investigations by the Inspector-General, and
- allowing her access to Tax Office records, data and information directly when required.
“This decision is a clear signal to taxpayers that we have strong checks and balances within the tax system in Australia,” said Ruth Owen, Inspector-General of Taxation and Tax Ombudsman. “When something goes wrong, my agency can investigate independently and get to the bottom of problems quickly, fairly and without fear or favour.”
“The Tax Commissioner and I signed a joint protocol at the end of last year that sets out how the ATO and my Office work together and most of the time this cooperative approach works very well, but Robodebt showed us all what happens when this type of arrangement breaks down,” said Ms Owen.
All staff within the ATO and Taxation Practitioners Board (TPB) now have a duty to cooperate with the Inspector-General at every stage of an investigation, from initial inquiries through to the publication of findings and follow-ups on recommendations made. Delaying or obstructing an investigation, withholding relevant information or providing the wrong information are all now breaches of the public service code of conduct, which form grounds for misconduct and possible disciplinary action.
The Bill also gives the Inspector-General powers to access agency records directly rather than relying on the agency to turn them over upon request.
“Investigations are not always straightforward and the evidence we need might be in a format we hadn’t expected or was hard to define in a request for information. We try very hard to be clear but sometimes the one key record we need isn’t made available. That could be because it doesn’t exist, which is fair, but it may be that it was just hard to find, or because someone chose not to share it with me. This new power means that I can access their records and information directly if I don’t think I’m getting the information I need or expect,” said Ms Owen.
“I don’t expect to use these powers very frequently, but Australian taxpayers have a right to expect that there are consequences for any officials seeking to obstruct an Ombudsman investigation, especially when their money is at stake. This Bill now spells that out,” she said.
ENDS