Updated Compliance Program 2004-05 - This information was updated on 13 October 2005

High-risk refunds

Reviewing high-risk refunds is an important part of our intelligence-gathering processes, particularly for identifying fraud and tax avoidance schemes.

Before we issue assessments, we do a series of checks for consistency with a set of risk criteria based on intelligence from our compliance activities. If the risk criteria are triggered, we do not issue a refund until we review the case.

The types of things we identify through our high-risk refund checks include over-claimed tax withheld, excessive interest deductions, and even the use of fraudulent payment summaries.

A review may be finalised by:

• matching the return information with internal data, such as payment summary information
• phoning the taxpayer or their tax agent to get more detail on particular information in the tax return
• phoning the taxpayer's employer to verify employment details
• sending a questionnaire to the taxpayer to determine whether the relevant tax return information is accurate, or
• doing further audit investigation.

Sections within A. Individuals

• Registering in the system
• Reporting correct information
• Deductions for work expenses
• Rental income and expenses
• Capital gains tax
• Interest, dividend and employment income
• Tax agents
• Superannuation
• High-risk refunds
• International tax issues
• Aggressive tax planning
• Meeting lodgment obligations
• Meeting payment obligations
• How we help you comply