ATO Issues New Warning To Tax Dodgers

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

14 October 2002

Australian Tax Commissioner, Michael Carmody confirmed on Thursday that the ATO will be ramping up the number of audits that it conducts in order to catch more tax dodgers.

Speaking to ABC News last week, Mr Carmody revealed that:

'This year round about 90% of our field forces will now be involved in more actively auditing, verifying that people are meeting their obligations under the system. And in addition, we've taken some steps to progressively turn on penalties for late lodgement of activity statements and other returns.'

Citing the building and construction industry as an example of the sectors now under closer scrutiny, the ATO Commissioner explained:

'Generally, we look to where cash is the norm in the industry. And that is typically for some, too tempting when it comes to their tax responsibilities. So we look at a range of industries including transport, cafes, others, hairdressing and so on.'

Peter Hendy, chief executive of the Australian Chamber of Commerce and Industry also appeared on the Thursday evening radio show. Speaking on behalf of the Australian business community, Mr Hendy acknowledged that firms must comply fully with their tax obligations, but suggested that the ATO should still be providing a higher level of support and education to businesses regarding what is required of them:

'It's not apparent that there's any sort of major haemorrhaging in the tax system or anything to suggest a massive ramping up of auditing,' he observed.

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