The Inspector-General of Taxation (IGT) on Wed 31.10.2012, announced terms of reference for his review into aspects of the ATO’s use of compliance risk assessment tools and their application in selecting taxpayers for audit or other compliance activities. Mr Noroozi noted taxpayers and tax advisers’ concerns regarding the tools’ accuracy and application.
“Importantly I want to know if the ATO risk tools are doing the job properly and not picking up too many compliant taxpayers in the net. We need to minimise unnecessary compliance costs which are a burden to both taxpayers and the tax system,” Mr Noroozi said.
Mr Noroozi also said the ATO’s “tax refund integrity program”, where refunds are withheld on triggering risk flags, it will be investigated as part of a separate IGT review to “commence shortly”.
COMMENTS are due by 30 November 2012.
Source: IGT media release, 31 October 2012
[LTN 211, 31/10]