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Tuesday, 29 May 2012

ATO program targeting GST compliance

  1. In the 2010 Budget, the Tax Office received over $337 million in funding over four years for additional activities to promote voluntary GST compliance and improve methods for the detection of non compliance.
  2. The program focuses on various areas within the GST legislation, including the following:
    • Detecting and dealing with taxpayers who deliberately avoid their GST obligations; and
    • Enhancing support and education to encourage taxpayers to meet their GST obligations.
  3. The Tax Office is detecting non compliance by using methods which include:

    • The use of new risk indicators to detect incorrect or fraudulent refund claims;
    • Issuing pre-due date lodgment reminders to taxpayers via SMS and letters;
    • Verifying refunds by phoning or visiting taxpayers and contacting third parties such as the state revenue offices and land titles offices to substantiate claims; and
    • The use of small business benchmarks to identify cases for audit or review.
  4. During the 2010/11 year, the Tax office compliance program resulted in:
    • Over $150 million being collected through additional GST debt collections activities;
    • More than 245,000 debt cases being referred to external agencies; and
    • Over 1,000 debt cases being referred for prosecution.
  5. For more information on the methods and results of the Tax Office GST compliance program, go to http://www.ato.gov.au/businesses/content.aspx?doc=/content/00264648.htm

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