The 2011-12 Annual Report of the Inspector-General of Taxation (IGT) has been released. The report highlights some of the main themes in relation to tax administration arising in 2011-12 – this included:
- real time ATO compliance approaches – the IGT noted the ATO’s increasing adoption of risk management strategies that aim to assess risks at earlier points in the lodgment/compliance assurance cycle. However, the IGT noted a result of such an approach is “increased costs for affected taxpayers”;
- ATO staff capability – the IGT noted the challenges that the ATO faces in developing and maintaining a technically capable workforce. Mr Noroozi noted the ATO has given significant attention to structures that should support the development and maintenance of staff capability;
- resolving policy or legislative ambiguity – the IGT noted that there are circumstances where insufficient clarity of policy may make judicial determination an unattractive option to address the underlying ambiguity. In this respect, the IGT said improved consultation among the ATO, Treasury and the private sector may be required before new laws or amendments are enacted.
The Annual Report is available on the IGT website.
[LTN 204, 22/10]