ATO Collects An Extra $3 Billion From Audits And Verifications

by Mary Swire, Tax-News.com, Hong Kong

29 October 2003

The Australian Tax Office has revealed that it collected an additional $3 billion in revenues last fiscal year as a result of increased audit and verification activity, including $1 billion from an increased focus on large business and high-net-worth individuals.

"This is $3 billion in extra revenue for the Australian community and a third from the big end of town," Tax Commissioner Michael Carmody announced, speaking on the release of the Commission of Taxation’s Annual Report yesterday.

"We undertook around 138,000 field visits and made 110,000 phone calls as part of our audit and verification work," Mr Carmody explained, adding that: "As well as our audit work we continued to focus on providing information and education to help people understand their tax obligations.”

"A first for this year was the public release of our Compliance Program which details in a single document the measures we take to ensure the integrity of the tax system,” the Tax Commissioner continued. "Another first for the year was the release of the Large Business and Tax Compliance Program a common sense explanation of what attracts our attention and the arrangements the big end of town can expect us to challenge.”

Mr Carmody concluded: "We continued to focus on making it as easy as possible for people to comply with their tax obligations. With tax agents preparing around 75 per cent of individual returns and 95 per cent of business returns, we need to ensure tax agents have the support they need to meet their clients' tax obligations. This year we have worked closely with agents to improve our products and services including online access to client details through our tax agent portal, and by significantly improving our phone services."

According to the Tax Commissioner, over the coming year the Tax Office will focus on risks to the system including: transfer pricing, abusive use of tax havens, activities of high-turnover medium-sized business - those closer to $100 million, aggressive tax planning and those who promote it, GST fraud and evasion, misuse of bartering exchanges, work expenses - which have risen out of step with ordinary price increases, rental properties, do-it-yourself super funds, and illegal tobacco.

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