Media release: 3 December 1999
ATO TO RESPOND TO CLAIMS OF INEFFICIENCY AND FRAUD
The ATO will be asked to respond to findings of major weaknesses and
inefficiencies in the TFN system at a public hearing in Canberra on Monday
6 December 1999.
The House Economics Committee Chairman, Mr David Hawker, said 'This
audit report adds to over fifteen years of ANAO and parliamentary reports
that have found shortcomings in the ATO's performance due to poor quality
data and systems. The audit report highlights $500m worth of tax that
has not been collected and the failure of the ATO to address significant
TFN and tax fraud risks.'
'While the Committee acknowledges that the Tax Office has agreed to
the Auditor-General's recommendations, there have been some qualifications
in the ATO's response. The Committee is also concerned about the priority
that the ATO is placing on these reforms.'
Mr Hawker said that 'Issues to be addressed at the hearing will include:
- shortcomings in the ATO's data and systems, including failings in
identifying deceased clients and deregistered companies;
- claims by the ATO that of the 185,000 potential duplicate records
identified by the ANAO, less than 2,500 are actual duplicates;
- the ATO's failure to take advantage of more modern and up-to-date
methods for generating secure TFNs;
- the need for improved Proof of Identity procedures in the ATO and
across government agencies more generally;
- the essential privacy protections of the current TFN system that need
to be preserved;
- the need to refine systems for issuing TFNs and collecting tax from
non-residents;
- options for improving client service in relation to the issuing of
TFNs; and
- the ATO's failure to bring new policy options to the attention of
government.'
The Committee will also hear from the Australian Institute of Criminology
(AIC) about the significant issue of identity-related fraud.
Mr Hawker said 'The Committee is concerned at the increasing level of
identity-related fraud being perpetrated against the government. The audit
report has highlighted that the ATO has not adequately responded to this
risk.'
'Issues to be canvassed with the AIC include:
- the significance of identity-related fraud for the Australian government
and community;
- new and emerging fraud risks facing the ATO, especially in the TFN
area; and
- ways of preventing fraud, including through improving Proof of Identity
procedures.'
Copies of the ATO and AIC submissions are available from the Committee's
secretariat or website at http://www.aph.gov.au/house/committee/efpa.
Ends // 3 December 1999
Further information: David Hawker MP (Chairman) 03 - 5572 1100 (elec)
02 - 6277 4100 (parl)
Melissa Stutsel (Principal Research Officer) 02 - 6277 2319
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
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