Australia Announces ATO Probe

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

19 April 2010

Australian Assistant Treasurer, Nick Sherry, has released wide-ranging terms of reference for the Inspector-General of Taxation's review of the implementation of the Australian Taxation Office's 'Change Program.'

Sherry confirmed today (April 19) that he wants "a comprehensive review of what has been occurring with the implementation of the Tax Office's IT upgrade," known as the Change Program.

"The Tax Office is completely independent so I personally cannot direct in relation to the issues that have been brought to my attention, that's why I have directed the Inspector General to step in and immediately review the program," Sherry said. "The Terms of Reference are wide-reaching to ensure that all aspects of the program are investigated."

"In particular, I want a clear understanding on how taxpayers have been affected," he added.

The Terms of Reference direct the Inspector-General of Taxation to assess: the impacts of the Change Program on taxpayers, taxpayer representatives and other external clients of the Australian Taxation Office; the impacts of the Change Program within the Australian Taxation Office; the resources used to implement the Change Program and whether these resources have been efficiently applied; and any other related matters.

Sherry stated: "I have asked the Inspector-General to consider engaging relevant technical expertise to assist him with the review and to consult broadly with the community and other relevant stakeholders. I've required that these consultations include discussions with the key private sector project providers and all third party assurance assessors involved in the project."

He concluded that: "An appropriate timeline for the completion of the review will be decided in conjunction with the Inspector General and will be made public by the Inspector General in due course."

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