Media release: 2 July 1999
PARLIAMENTARY COMMITTEE TO REVIEW MANAGEMENT OF TAX FILE NUMBERS
Glaring inefficiencies in revenue collection by the Australian Taxation
Office, with some $500 million of revenue not being collected, have been
uncovered by a recent performance audit by the Auditor General. This is
despite the tax file number (TFN) system having improved tax collection.
The Auditor General's report revealed that the basis of the problem is
the operation of the TFN system which is the building block of the tax
revenue system. The audit also suggested that the ATO could have been
more proactive in advising government about problems with the TFN system
and options to address those problems.
'For these reasons, a new inquiry to examine the management of the TFN
was launched this week by the House Economics Committee' said the Committee
Chairman, David Hawker MP.
Mr Hawker stated that 'The audit showed there was less than optimal performance
of the TFN due to:
- shortcomings in the quality of the ATO's data bases eg data matching
studies by the Audit Office revealed 3.2 million more individual TFN
registrations than people in Australia counted at the last census;
- weaknesses in the management of the risks associated with verification
of the identity of the TFN applicant;
- deficiencies in the systems supporting the administration of the TFN
withholding tax eg ATO cannot reconcile the accounts of almost all investment
bodies and there are gaps in the coverage of the TFN system particularly
for real estate transactions and transactions reported to AUSTRAC; and
- less than full compliance by the ATO's clients with the TFN quotation
arrangements.
'These are serious matter which need to be addressed' said Mr Hawker.
'While the Committee acknowledges that the Tax Office has agreed to the
Auditor-General's recommendations, there have been some qualifications
in ATO's response, and legislative amendments are needed to implement
some of the recommendations. Accordingly, a parliamentary committee is
well placed to look at these issues' said Mr Hawker.
'We are mindful of the sensitivities surrounding the privacy aspects
of the TFN and the big job that the Tax Office has in implementing tax
reform, but these factors do not preclude the TFN matters being corrected
as well' said Mr Hawker.
'The ATO has always been cooperative in assisting parliamentary committee's
in improving the tax system to the benefit of the community, and the Economics
Committee looks forward to a continuation of that help from the ATO on
this occasion. The Committee expects to commence work on this inquiry
in August/ September' concluded Mr Hawker.
Ends
2 July 1999
Further information:
David Hawker MP (Chairman) 03 - 5572 1100 (electorate)
Beverley Forbes (Secretary) 02 - 6277 4587
Email: EFPA.Reps@aph.gov.au
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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