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  • ATO action to reduce the gap

    The key to an effective tax system is a high level of willing participation. The extent of taxpayers' willingness to participate depends on whether they:

    • value the tax and superannuation systems
    • have trust and confidence in us as administrators.

    Our strategies to reduce the gap and encourage willing participation are based on these principles. They include:

    • offering a range of tools and services. This will make it easier for small businesses to get their tax and super right and navigate some of the complexities of the system
    • working closely with tax professionals and our other partners. This will help us to deliver integrated strategies to engage with small businesses.

    The black economy has an impact on the tax gap, and on honest small business owners. We're continuing our focus on businesses that actively avoid paying the right tax by:

    • implementing an enhanced enforcement strategy to better target those doing the wrong thing. This will make it fairer for those doing the right thing
    • using data-matching, risk modelling, benchmarks and third-party data to identify at-risk businesses.

    We also provide insights to government, through the Department of Treasury. We point out potential opportunities for statutory law reform to improve the tax system. We do this where we see the law is difficult to apply, and where compliance costs are unreasonable. In addition, we suggest where the law can be strengthened. This will allow us to more effectively deal with compliance risks.

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      Last modified: 03 Oct 2019QC 59986