IGTO report into the Exercise of the Commissioner’s General Powers of Administration is released publicly

Aiming to improve general tax administration via certainty, accountability and transparency

The report of the Inspector-General of Taxation and Taxation Ombudsman’s (IGTO) investigation into The Exercise of the Commissioner’s General Powers of Administration has been publicly released.

‘The report examines an important area of tax administration,’ said Karen Payne, the IGTO. ‘Although many unremarkable decisions and actions are made or taken every day by Tax Officials in reliance on the Commissioner’s general powers of administration (GPA), a number of significant decisions and actions are also made by the Commissioner (or his delegate, or duly authorised tax official) in reliance on the GPA as part of his administration of the tax system.’

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IGTO Annual Report FY23 released

20th anniversary (2003 – 2023) – independent investigations to support Integrity in Tax Administration

The Inspector-General of Taxation and Taxation Ombudsman (IGTO), Ms Karen Payne, has released her agency’s Annual Report for the financial year ended 30 June 2023 (FY23). “I am pleased to release the IGTO’s annual report which details our achievements over the past year. This year, in particular, is a significant milestone for my agency, being the 20th anniversary of the creation of the office. The IGTO has been supporting the integrity of the taxation system for 20 years – as Inspector-General of Taxation since 2003 and, additionally, as the Taxation Ombudsman since 2015.”

Reflecting on the past 20 years of her agency, Ms Payne said: “Tax and superannuation systems impact every Australian and all Australians benefit from a tax and superannuation system that is administered with integrity – transparently, fairly and equitably.” 

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IGTO report identifies nine ways to improve administration of the Commissioner’s Remedial Powers (CRP) 

Aiming to improve tax law certainty for taxpayers without delay via CRP

The Inspector-General of Taxation and Taxation Ombudsman (IGTO), Ms Karen Payne, has today publicly released her report and recommendations following her office’s investigation into The Administration of the Commissioner’s Remedial Power (CRP). 

Since March 2017, the Commissioner of Taxation has had a statutory power – the Commissioner’s Remedial Power (CRP) – to modify the operation of certain taxation law provisions that give rise to unintended or unforeseen outcomes. 

The report examines this important power and discretion vested in the Commissioner of Taxation – that is the Commissioner’s ability to temporarily modify tax laws where it produces results which are unintended or unforeseen until a more permanent, legislative resolution can be implemented. In addition to providing improved timeliness and greater certainty for taxpayers, the measure was also intended to reduce the pressures on the law reform agenda.

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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.