The review into aspects of the Pay As You Go (PAYG) instalments system is our first review to be undertaken in direct response to insights
drawn from the IGT’s complaint handling service. It also had stakeholder support during consultation on our 2017 work program and attracted submissions from individual taxpayers, tax practitioners and their representative bodies.

A key focus of this review was individual taxpayers’ awareness and understanding of the PAYG instalments system. Individual taxpayers were unclear as to why they had been entered into the system, its requirements and exemptions, its interaction with the annual income tax system and the support tools available to them. Accordingly, the IGT has
recommended a number of improvements to the ATO’s taxpayer communication and guidance materials as well as internal staff education and support.

Overall, we made 7 recommendations which are made up of 22 parts. The ATO has agreed in full with six recommendations and has partly agreed with the other (or agreement with 21 out of 22 parts).

Downloads and documents

Our review into the Australian Taxation Office’s (ATO) employer obligations compliance activities was undertaken in response to concerns raised by stakeholders and is based on submissions from a wide range of stakeholders, including employers, workers, superannuation funds and tax practitioners as well as their respective
representatives.

Given the Government’s focus on reducing the compliance burden, particularly for small businesses, a number of other reviews, considering various aspects of employer obligations, had already been undertaken prior to this review. The ATO had also embarked on a program of improvements. Accordingly, this review seeks to build on existing or developing ATO practices to enhance the tax and superannuation systems as a whole whilst delivering improvements to all relevant parties.

Overall, we made 11 recommendations. Two are directed to Government and 9 were directed to the ATO. The ATO has agreed in full or in part with 7 recommendations and disagreed with two.

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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

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.

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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

We are currently working on the HTML version of our report. In the meantime, you can download a PDF copy of our full report.

Documents and downloads

We are currently working on the HTML version of our report. In the meantime, you can download a PDF copy of our full report.

Documents and downloads

We are currently working on the HTML version of our report. In the meantime, you can download a PDF copy of our full report.

Documents and downloads

We are currently working on the HTML version of our report. In the meantime, you can download a PDF copy of our full report.

Documents and downloads

We are currently working on the HTML version of our report. In the meantime, you can download a PDF copy of our full report.

Documents and downloads