In a media release issued on 4 April 2011, the Inspector-General of Taxation (IGOT), Ali Noroozi, announced his new work program into aspects of the Australian Tax System's administration, following an extensive community consultation process.
The IGOT's new work program consists of the following reviews:
- Review of ATO implementation of the Report on Aspects of Income Tax Self Assessment (ROSA) recommendations
[The review will examine whether the implemented ROSA recommendations have been successful in achieving their original aims and whether there are any further improvements that can be made.]
- Review into ATO use of benchmarking to target the cash economy
[The IGOT will investigate whether benchmarks are an appropriate tool for identifying the potential underreporting of income and the calculation of default assessments, and whether the ATO's expectations in relation to micro and small business record keeping are clearly communicated and reasonable.]
- Review into ATO use of early and alternative dispute resolution
[This review is being conducted both at the request of taxpayers and their representatives as well as the ATO. It seeks to determine whether the ATO is currently making sufficient use of early and alternative dispute resolution and whether the ATO and taxpayers could benefit by broadening use of these methods.]
- Review into the ATO's small and medium enterprise audit and risk review policies, procedures and practices
[Strong stakeholder representations were made about onerous and unnecessary costs and workloads imposed through ATO compliance action. The terms of reference for this review have been set and the review is currently under way.]
- Follow-up review
Recommendations contained in a number of reviews completed since November 2008 will be subject to an implementation review.
As the IGOT commences each review, terms of reference will be prepared and submissions will be sought.