Combatting tax fraud –IGTO says it’s vital to ensure bank account integrity to prevent and detect Tax Identity (TaxID) fraud

– Calls for the ATO to improve its administration of taxpayer banking details and refunds to combat TaxID fraud

– IGTO interim (Phase 1) report into TaxID fraud makes 13 recommendations

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) commenced an own-motion investigation into Tax identification (TaxID) fraud on 15 December 2023.  This was in response to an increase in complaints and dispute investigations concerning TaxID fraud received by the IGTO.

The IGTO makes thirteen (13) recommendations for ATO improvement in this interim (Phase 1) report – The importance of bank account integrity.

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Inspector-General of Taxation welcomes new powers as part of the Government’s response to Robodebt

The Inspector-General of Taxation and Tax Ombudsman (IGTO) has welcomed the Government’s decision to grant her new powers in response to the Royal Commission into the Robodebt Scheme. The Bill passed on Wednesday directly addresses two critical failings of oversight by:

  • creating a duty for the Australian Tax Office (ATO) to assist with investigations by the Inspector-General, and
  • allowing her access to Tax Office records, data and information directly when required.

“This decision is a clear signal to taxpayers that we have strong checks and balances within the tax system in Australia,” said Ruth Owen, Inspector-General of Taxation and Tax Ombudsman. “When something goes wrong, my agency can investigate independently and get to the bottom of problems quickly, fairly and without fear or favour.”

 

Don’t bury the lede! ATO letters getting a hard edit from the Inspector-General

Letters from the Australian Taxation Office (ATO) are sometimes an unwelcome delivery, but the information they contain is often important, detailed and time sensitive. In recent years, the ATO has worked hard to make its communications clearer, but the quality and clarity of ATO communications is still a major area of concern in complaints and feedback received by the Inspector-General of Taxation and the Taxation Ombudsman (IGTO). To address this, the IGTO is undertaking a review into the ATO’s drafting processes to see how messages are prepared, how decisions are made, whether feedback is taken on board, and if the ATO can improve its messaging to help more people understand their tax obligations.