Review: Taxpayers’ Charter and taxpayer protections

Reviews and reports

Our review into the Taxpayers’ Charter (Charter) and taxpayer protections was undertaken to examine concerns raised in relation to the Australian Taxation Office’s (ATO) adherence to the Charter, its currency and effectiveness. Specifically, stakeholders consider that there are limited avenues for enforcement of the Charter principles, diminishing its effectiveness in affording protection to taxpayers.

As part of the review, we compared the Australian approach with those partner jurisdictions, such as the United States of America, the United Kingdom, Canada and New Zealand. Additionally, a significant body of academic and other research was considered, including those of the Organisation for Economic Cooperation and Development, the International Bureau of Fiscal Documentation and professional bodies
(including the Asia-Oceania Tax Consultants’ Association, Society of Trust and Estate Practitioners and Confederation Fiscale Europeene) that collectively represented more than half a million tax practitioners worldwide. Moreover, the IGT also commissioned the University of New South Wales to research and report on existing taxpayer rights in
Australia and, from that research, drew observations regarding the difficulties taxpayers may face in seeking to enforce their rights.

Overall, we made 4 recommendations with which the ATO has either agreed in full, in part or in principle. However, the ATO’s level of agreement and their accompanying commentary create a level of uncertainty as to how and to what extent the recommendations
would be implemented. Accordingly, to the extent that stakeholder concerns persist, we may undertake a follow-up review to assess the effectiveness of resulting ATO actions and, if necessary, make recommendations for government to consider mandatory reporting of the
ATO’s compliance with the Charter and additional enforceable remedies.

Documents and downloads

Tax Ombudsman report

Review: ATO services and support for tax practitioners

Reviews and reports

Our review into the Australian Taxation Office’s (ATO) services and support for tax agents and business activity statement agents (collectively referred to as tax practitioners) was undertaken in response to concerns raised by the latter and their representative bodies. These concerns related to access and adequacy of ATO support and services and the resulting strained relationship between tax practitioners and the ATO.

Maintaining a positive relationship between the ATO and tax practitioners is critical to the functioning of the self assessment system as the latter assists approximately 70 per cent of individual and 90 per cent of business taxpayers to comply with their tax obligations. Tax practitioners are also an invaluable source of knowledge and practical experience which may be drawn upon to develop more effective and efficient tax laws and administrative practice.

Overall we made 8 recommendations, with which the ATO has agreed fully or partially. We believe that the appropriate implementation of the recommendations in this review will result in an improved ATO-tax practitioner relationship which, in turn, will have a positive effect on the administration of the tax system.

Downloads and documents

Tax Ombudsman report

Review: Debt collection

Reviews and reports

This review was prompted by concerns raised by individuals, small businesses, tax and insolvency practitioners as well as their representative bodies. Broadly, these concerns related to the Australian Taxation Office’s (ATO) ability to recover tax debts effectively whilst ensuring that its actions were proportionate to circumstances of the affected taxpayers.

Overall, we made 19 recommendations to 16 of which the ATO has agreed, agreed in principle or agreed in part. The ATO has disagreed with 2 recommendations and considered that one recommendation was a matter for Government.

Documents and downloads

Tax Ombudsman report

Review: Aspects of the Australian Taxation Office’s use of compliance risk assessment tools

Reviews and reports

Our review into aspects of the Australian Taxation Office’s (ATO) use of compliance risk assessment tools was prompted by concerns raised about their effectiveness by taxpayers, tax practitioners and their representative bodies. It had also been identified as a review topic during the course of previous reviews.

Stakeholders have acknowledged that it is appropriate for the ATO to adopt a risk-based approach in its compliance strategy. In fact, most comparable revenue authorities take such an approach to make the best use of their resources in protecting government revenue.

Our report makes 16 recommendations to the ATO, all of which have been agreed.

Documents and downloads

Tax Ombudsman report