A1.1 On 23 November 2004, the Inspector-General of Taxation announced terms of reference for his review into aspects of the Tax Office's business active compliance activities. These were as follows.
The Inspector-General will review whether the length of time taken to complete Tax Office active compliance activities directed at businesses is reasonable in particular circumstances. It will focus on:
- the relevant governance processes and benchmarks;
- the nature and cause of that length of time;
- the extent and impact of that length of time;
- the identified risks to business, the Revenue and other areas of the community; and
- practices which may reasonably minimise the adverse impacts that the length of time may have on businesses while providing reasonable assurance that the risk to the Revenue is minimised.
The Inspector-General will review whether the application of penalties and interest to businesses during active compliance activities is consistent. It will focus on:
- the nature and extent of penalties and interest applied; and
- the consistency of the Tax Office's approach to that application.