The Inspector-General of Taxation (IGT), Ali Noroozi, on Mon 26.5.2014, announced the terms of reference for 2 reviews. Details are as follows:

  • ATO approach to debt collection – “Despite the ATO’s debt assistance programs, its approach to collecting taxes has been a persistent source of taxpayer complaint,” Mr Noroozi said. Furthermore, Mr Noroozi said some stakeholders believe that the ATO has recently taken a firmer approach to debt collection despite continuing economic pressures whilst others are of the view that the ATO allows debts to accumulate for too long before taking action. The review will, among other things, focus on the ATO’s strategies to manage tax debts, the structure and design of the ATO’s debt recovery and assistance initiatives, appropriateness and consistency of assistance that the ATO offers taxpayers, and the ATO’s use of third party debt collectors.
  • ATO services and support for tax practitioners – According to the IGT, challenges in maintaining ATO services for tax practitioners have strained the relationship, with the level of tax practitioner satisfaction falling from 72% in 2007 to 62% in 2012 (with a low of 51% in 2011). “Despite more recent attempts to improve the ATO’s tax practitioner services, concerns persist regarding their adequacy, reliability and functionality,” Mr Noroozi said. The review will investigate ATO services, such as the Tax Agent Portal, relationship managers, lodgment program and tax practitioner’s risk differentiation framework, to identify improvements for the ATO, tax practitioners and taxpayers.
  • COMMENTS are due by 18 July 2014.

Source: IGT media release, 26 May 2014

[LTN 99, 26/5/14]