Media release: 11 April 2000
NEED FOR ATO TO GET BASICS RIGHT
Systemic failings in ATO data and systems quality and the failure of
the ATO to take a long term view will be the focus of the House Economics
Committee's hearing this week with the Tax Office.
The ATO will be questioned on the progress they have made in implementing
the Auditor-General's recommendations for improving the Tax File Number
system when the House Economics Committee holds its next TFN hearing in
Canberra on Wednesday 12 April 2000.
Committee Chairman, Mr David Hawker MP, said 'the impression emerging
from this inquiry is that the ATO focuses on dealing with the immediate
problems and issues to the almost neglect of longer term issues that form
the underpinnings of the ATO system.'
'The Auditor-General has stated that $500m worth of tax is not being
collected because of tax file number weaknesses. The findings of the Audit
Report and the issues raised by witnesses during this inquiry go to the
heart of ATO operations. These findings include:
- 3.2 million more tax file numbers in Australia than people;
- large numbers of duplicate and inactive TFNs;
- failure of the ATO to make full use of available information; and
- deficient computer systems in some areas.'
'These deficiencies are of even greater concern when the flow-on effects
of the TFN system are taken into account' said Mr Hawker. 'Departments such
as Centrelink and the Child Support Agency rely on the TFN system as a central
part of their operations and as a means of preventing fraud against the
Commonwealth. In addition, there is a concern that the failings of the TFN
system could have implications for the Australian Business Number.'
'It is crucial that the ATO focus on getting its core business right.
The ATO must put aside what appears to be a search for the 'quick fix'
and instead focus on a whole-of government, long term approach to its
decision making about the TFN system.'
'The Committee expects to table its report on this inquiry in June'
concluded Mr Hawker.
Information on the progress of the inquiry is available on the Committee's
website at: http://www.aph.gov.au/house/committee/efpa/TFNaudit/tfnindex.htm
Ends // 11 April 2000
Further information: David Hawker MP (Chairman)
02 - 6277 4837 (Parliament House)
Melissa Stutsel (Principal Research Officer) 02
- 6277 2319
Email: EFPA.Reps@aph.gov.au
Public Hearing Program
Date: Wednesday
12 April 2000
Time: 10.00am
- 12.00pm Australian
Taxation Office
Location: Committee Room 2R1
Parliament
House, Canberra
Note: The hearing is to be broadcast on
the Parliamentary Internet site at: http://webcast.aph.gov.au/livewebcast1.asp
and on the Parliament House Monitoring System.
Committee Membership 39th Parliament
Chairman: Mr David Hawker MP
Deputy Chairman: Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Ms Anna Burke MP
Ms Teresa Gambaro MP
Mrs Kay Hull MP
Mr Mark Latham MP
Mr Christopher Pyne MP
Hon Alex Somlyay MP
Dr Andrew Southcott MP
For a copy of the Audit Report No 37 - Management of Tax File Numbers:
Contact the Australian National Audit Office (02 6203 7685) or their
website http://www.anao.gov.au
Or Government Info Shops or their website http://www.ausinfo.gov.au
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