Review into the Australian Taxation Office’s compliance approach to individual taxpayers – use of data matching
A report to the Assistant Treasurer
Table of Contents
Telephone: (02) 8239 2111
Facsimile: (02) 8239 2100
Level 19, 50 Bridge Street
Sydney NSW 2000
GPO Box 551
Sydney NSW 2001
10 October 2013
Senator the Hon Arthur Sinodinos AO
Canberra ACT 2600
Review into the Australian Taxation Office’s Compliance Approach to Individual Taxpayers — use of Data Matching
I am pleased to present you with my report of the above review which is one of three concurrent reviews examining aspects of the ATO’s compliance approach to individual taxpayers.
This review arose out of taxpayer and tax agent concerns regarding the way in which the ATO collects data from third parties and uses them in its compliance activities.
The review found that the ATO’s data matching program was generally effective in detecting instances of omitted income and that the ATO was undertaking work to enhance its processes, including manual reviews of certain cases before audits are commenced. However, I have identified a number improvement opportunities and have made thirteen recommendations in this regard. The ATO has agreed with all of the recommendations with a qualification in respect of one.
The recommendations, in the main, are aimed at improving the timeliness and effectiveness of data matching projects, including enhancing its associated evaluation processes, and its engagement with third party data providers, taxpayers and their agents.
I offer my thanks for the support and contribution of professional bodies, tax practitioners and individual taxpayers to this review. The willingness of many to provide their time, expertise and experience in preparing submissions and discussing issues with myself and my staff is greatly appreciated. I also thank the relevant ATO officers for their professional cooperation and assistance in this review.
Inspector-General of Taxation
© Commonwealth of Australia 2013
Ownership of intellectual property rights in this publication
Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia (referred to below as the Commonwealth).
Creative Commons licence
With the exception of the Coat of Arms (see below), the IGT logo and ATO sourced material, this publication is licensed under a Creative Commons Attribution 3.0 Australia Licence.
Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided that you attribute the work. A summary of the licence terms is available from http://creativecommons.org/licenses/by/3.0/au/deed.en. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.
The Commonwealth’s preference is that you attribute this publication (and any material sourced from it) using the following wording:
Source: Licensed from the Australian Government Inspector-General of Taxation under a Creative Commons Attribution 3.0 Australia Licence.
The Australian Government Inspector-General of Taxation does not necessarily endorse third party content of this publication.
Use of the Coat of Arms
The terms under which the Coat of Arms can be used are set out on the It’s an Honour website.