The compliance model is a structured way of understanding and improving client compliance. It helps us to understand the factors that influence client behaviour and to apply the most appropriate compliance strategy.
Client behaviour is influenced by business, industry, technology and data, sociological, economic and psychological factors.
The compliance model shows a continuum of client attitudes towards compliance. At the base of the continuum, clients have the desired attitude of being 'willing to do the right thing'. At the other extreme, clients have decided not to comply – choosing to evade or opt out of the tax system.
The compliance model also summarises the different sorts of support and intervention that we may need to provide to collect the required revenue. The model suggests that the ATO has the ability to influence client behaviour through our response and interaction.
Find out more:The compliance model is a structured way of understanding and improving client compliance.