The IGT recommends that the ATO continue to improve the LB&I risk identification process including:
- better identifying potential risk hypotheses through closer working relationships between risk managers and operations teams on an ongoing basis;
- capture better input data through the income tax return and its associated schedules; and
- refine or remove inappropriate risk filters.
We agreed and this recommendation and implementation was completed on 26 November 2014.
A review was conducted and resulted in projects to improve working relationships between risk managers and operations teams, and improve the capturing of input data. We are seeking to capture client account data by using taxpayer systems instead of adding additional fields in the tax return schedule. We are aiming to complete the first phase of this project by the end of 2015. We reviewed our risk filters and removed all redundant filters.