Terms of reference for the review into the ATO's employer obligations
compliance activities conducted by the Inspector-General of Taxation
Easing the compliance burden for employers
- The distinction between ‘employee’ and ‘contractor’ for Federal
taxation and superannuation purposes, its coherence with business practices,
state taxation and other legal requirements as well as the interactions with
ABN and GST registrations.
- Simplification of reporting, withholding and payment
obligations for employers as well as certain contractors.
- The effectiveness of the ATO’s use of existing third party
data to reduce the compliance burden for employers.
- Guidance and tools for employers to discharge their
employee-related taxation and superannuation obligations, including the level
of protection afforded to those relying upon the information provided.
- Information and support for employees to understand their
rights, entitlements and avenues for redress where they become aware of
potential non-compliance by their employers.
ATO conduct of compliance activities
- The effectiveness of the ATO’s risk assessment and
verification processes to detect and address non-compliance of employer
obligations in a timely manner.
- The ATO’s consideration of relevant employee entitlements
protection and business viability impacts when undertaking compliance actions.
- The effectiveness of the ATO’s actions to address phoenix
- The ATO’s conduct during employer obligations compliance
activities, including the:
- proportionality and use of
information gathering powers;
- access and use of available
third party information to verify compliance;
- appropriateness of auditor
- pathways for escalating and
resolving issues before such activities are finalised;
- sustainability of audit and
- costs for employers and
- the feedback given to employees
who notify the ATO of potential employer non-compliance.
- The ATO’s administration of alienation of personal
services income provisions and its interaction with other compliance activities
including those relating to employer obligations.
- The extent to which aspects of the administrative penalty
regimes encourage or hinder voluntary compliance and self-reporting of non‑compliance
The IGT may also examine other relevant concerns raised or
potential improvements identified during the course of this review.
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