Matter number
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Matter considered
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Consideration
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10.2.a
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The effect that not abiding by the Guidelines would have on individual privacy
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- Retaining data for a period of seven years could increase the risks to an individual’s privacy. As such, we have in place very secure processes for handling and storing data. Once acquired, all data will be stored on our secure computer systems where access is strictly controlled and full audit logs maintained
- The ATO and our staff operate under stringent confidentiality and privacy legislation that prohibits the improper access to or disclosure of protected information. These obligations are supported by significant penalties, including imprisonment. This substantially mitigates the risks of breaches of privacy.
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10.2.b
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The seriousness of the administrative or enforcement action that may flow from a match obtained through the data matching program
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- An extension of the retention period will not affect the seriousness of the administrative action that may flow from the match, but will assist in detecting non-compliance or taxation fraud
- Where we propose to take administrative action where a taxpayer may have reported incorrectly, we will differentiate between those that try to do the right thing and those that set out to deliberately avoid their obligations. Documented procedures, including the Taxpayers’ Charter and compliance model will be followed to ensure fairness and consistency.
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10.2.c
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The effect that not abiding by the Guidelines would have on the fairness of the data matching program — including its effect on the ability of individuals to determine the basis of decisions that affect them, and their ability to dispute those decisions
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- There will be no effect on the fairness of the program or the ability of taxpayers to find out the basis of decisions that impact them or their ability to dispute those decisions
- Before any administrative action is undertaken, taxpayers will be given at least 28 days to verify the accuracy of the information that has been derived from this data matching program
- Where administrative action is to be undertaken, we will adhere to the principles established in the Taxpayers’ Charter and compliance model to ensure an equitable and consistent approach is taken
- If a taxpayer does not agree with an assessment, they maintain the right to dispute the decision. They also have the legal right to appeal against those decisions through the courts and tribunals.
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10.2.d
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The effect that not abiding by the Guidelines would have on the transparency and accountability of agency and government operations
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- There will be no adverse effects on the transparency and accountability of government operations
- A program protocol is submitted to the Office of the Australian Information Commissioner and we will strictly adhere to the commitments in that document
- We will publish a notice with general information about the program in the Federal Register of Legislation - Gazettes before administrative action commences. We will also make a copy of the program protocol available on our website.
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10.2.e
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The effect that not abiding by the Guidelines would have on compliance of the proposed data matching program with the Australian Privacy Principles in the Privacy Act 1988 and the Australian Government Privacy Code
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- There will be no effect on compliance with the Australian Privacy Principles contained in Schedule 1 to the Privacy Act 1988 due to longer retention of the data. The data is collected solely for the stated objectives established in the data matching program protocol.
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10.2.f
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The effect that complying with the Guidelines would have on the effectiveness of the proposed data matching program
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- The effectiveness of the program would be reduced if the data retention period is not extended
- There would be a significant reduction in our ability to detect incorrect reporting and taxation fraud without assessing trends in the data collected
- The destruction of the data in accordance with the current guidelines would impact the integrity of the taxation system by:
- limiting our ability to identify taxpayers who may be subject to administrative action
- resulting in the loss of revenue
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10.2.g
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Whether complying fully with the Guidelines could jeopardise or endanger the life or physical safety of information providers or could compromise the source of information provided in confidence
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- Not abiding by all the requirements of the Guidelines would not influence or affect the personal safety of any individual identified as part of the program or compromise the source of the information provided in confidence.
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10.2.h
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The effect that complying fully with the Guidelines would have on public revenue – including tax revenue, personal benefit payments, debts to the Commonwealth and fraud against the Commonwealth
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- Not allowing the variation to the data retention period of the current program would cause us to miss potential breaches of taxation laws and subsequent non-payment of tax. This would result in the Commonwealth foregoing taxation revenue
- There are risks to the integrity of taxation system when people fail to comply with their obligations. Abiding by all of the requirements of the guidelines will reduce the effectiveness of the proposed compliance activity. We would miss the opportunity to educate those taxpayers trying to do the right thing, and deter those that are non-compliant from repeating the behaviour
- The effect of abiding by all of the requirements in the guidelines could negatively impact both public revenue and the confidence the public and government have in the ATO as an administrator of the taxation system. People not complying with their taxation obligations, including those operating outside the system, set a bad example to compliant taxpayers and may encourage their non-compliance. Maintaining community and government confidence in the taxation system is critical to our ongoing role.
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10.2.i
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Whether complying fully with the Guidelines would involve the release of a document that would be an exempt document under the Freedom of Information Act 1982
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- Upon receipt of a freedom of information request only information relating to the taxpayer’s own affairs will be released to the taxpayer concerned.
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10.2.j
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Any legal authority for, or any legal obligation that requires, the conduct of the proposed data matching program in a way that is inconsistent with the Guidelines.
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- There is no specific legislative power authorising the conduct of this program inconsistent with the Guidelines
- The Commissioner of Taxation, or his authorised representative, has formed the opinion that this data is required to enable us to effectively and efficiently carry out its legislated functions under the general powers of administration contained in:
- Section 3A of the Taxation Administration Act 1953
- Section 8 of the Income Tax Assessment Act 1936
- Section 1-7 of the Income Tax Assessment Act 1997
- Section 356-5 in Schedule1 of the Taxation Administration Act 1953
- The reasons for proposing to operate outside requirements of the Guidelines are detailed above.
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