Detecting fraud or evasion
As previously mentioned, Australia's tax system operates on a self-assessment basis. However, we apply compliance strategies and tools, such as data matching and risk profiling, to detect cases of non-compliance.
We receive data on financial transactions from a wide range of organisations, including:
- financial institutions
- other payers
- government agencies
- company, property and vehicle registration offices
- overseas tax administrations.
This is automatically matched with information reported to us by taxpayers, and the resulting analysis identifies under-reporting and over-claiming in income tax and other returns. We also share information with federal and state law enforcement agencies.
Driven by a risk management approach, returns with apparent anomalies are subject to a progressively intensive review and audit process until issues are resolved or tax assessments amended or other action is taken as necessary.
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