In last week's TAXVINE - 2012 TAXVINE No 13 (20 April 2012) - Member 97 asked "how did the ATO go around last year saying they adjust 70-80% of these 'fraudulent' ITRs?" MEMBER 99 responds:
"You may wonder how the ATO goes about claiming to adjust 70-80% of suspected fraudulent returns - I think I have found one way they can justify the claim but there is no way they can justify their adjustment - I had a return for a meat worker pulled because it might be fraudulent - one employer - one payment summary and all deductions for WRE including knives, sharpening stones, union dues and personal protective items (ear plugs, mesh glove etc) listed on the payment summary.
Unfortunately for the taxpayer, they decided they didn't need to do anything about their return because the payment summary said it all - the ATO response was to disallow the personal protective items and reduce the other deductions by 50% - work that out!!!
This isn't revenue protection or fraud prevention - it is simply theft!!! - or is it properly termed aggravated theft because threats are involved?
We are well past the point where intervention is required."