A report to the Assistant Treasurer
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
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