Standing Committee on Economics, Finance and Public Administration

Review of the ANAO audit report No.37 1998-99 on the management of the Tax File Numbers
Media Releases

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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