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
  • employers
  • other payers
  • Centrelink
  • 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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Compliance program 

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    Last modified: 04 Jul 2014QC 41185