Our compliance model
The approach we take in our compliance program is consistent with our compliance model.
The model helps us understand the factors that influence compliance behaviour and the attitudes of different groups of taxpayers and their advisers to compliance. Based on that understanding we apply differentiated strategies to address risks to the fair operation of Australia's tax and superannuation systems.
Our aim is to influence as many taxpayers as possible to move down the pyramid into the 'willing to do the right thing' zone.
Making it easy
We want to make it as easy as possible for taxpayers to do the right thing by providing the information and tools they need to meet their tax and superannuation obligations as conveniently and inexpensively as possible.
This includes special assistance for those who are new to the tax system, or to Australia, to understand their obligations. We provide advice and information through our website and in print, including information in other languages, tailored to the differing needs of taxpayers. Text messages can alert taxpayers when their returns are due, while online lodgment applications such as e-tax enable taxpayers to deal with us electronically. Personalised assistance is available over the phone and through our programs such as Tax Help.
Through pre-filling we offer upfront access to the information held in our systems for those who deal with us electronically. This allows taxpayers and tax practitioners to check for any potential discrepancies in the data before lodging and helps reduce post-lodgment compliance activity.
Help to comply
Sometimes people will need our assistance in the form of a reminder or visit to help get things going correctly. Where necessary, we step up our actions, which may include reminder letters, record-keeping visits and phone calls to arrange debt repayments or assist in other ways.
We seek to clarify the law and communicate our views through public and private rulings, checklists, fact sheets, practice statements, taxpayer alerts and strategic litigation. We also consult with industry bodies on issues of concern to them.
Deter by detection
Detecting and dealing appropriately with non-compliance deters others. Where a taxpayer chooses not to comply, we take more intensive action including compliance reviews and audits, issuing final notices, imposing penalties and taking legal action.
Our main tool for detecting non-compliance is analysing and matching information reported to us by taxpayers and third parties such as financial institutions (see 'Information matching to help and protect'). Our information matching capabilities have grown strongly in recent years, from 409 million transactions reported by third party data providers in 2007-08, to more than 538 million transactions in 2011-12. This year we expect to match over 600 million transactions.
This increase has been accompanied by a commensurate increase in the number of discrepancies (identified by information matching) that we are acting on - from 266,000 in 2007-08 to over 540,000 in 2011-12.
Use full force of the law
We deal firmly with those who intentionally seek to obtain advantage over their competitors through the inappropriate use of the tax and superannuation systems. Through our actions we reassure the community that we are serious about protecting them from those who intentionally seek to abuse Australia's tax and superannuation systems.
Sections within About Compliance
Last Modified: Thursday, 19 July 2012