As usual the Shadow Assistant Treasurer David Cox wide of the mark when he selectively quotes an internal ATO working report and claims the Government isn’t serious about tax evasion.
The report, prepared by Mr Tom Sherman AO and commissioned by the ATO, is an internal working document relating to the ATO’s Serious Non-Compliance area, the contents of which are being considered by the Commissioner and, as such, have not been formally raised with the Government.
The Serious Non-Compliance area of the ATO combines intelligence analysis, complex audit and investigation skills to address tax evasion and fraud.
During 2002-03 it completed 421 audits resulting in assessments and penalties totalling $101.46 million; finalised 340 fraud investigations, referred 86 matters to the Australian Federal Police, and referred 113 briefs of evidence to the Department of Public Prosecutions with a recommendation for prosecution action.
Hardly the actions of a Government agency that is soft on tax cheats.
I welcome the ATO’s proactive approach to assessing its capabilities. The Government will consider any recommendations that are brought forward by the ATO and welcomes any new ideas to help crack down on tax cheats.
From its early days in office the Government has taken strong action to combat tax minimisation and avoidance including preventing trafficking of trust losses, closing abuse of research and development tax concessions, closing the infrastructure borrowing schemes which were being rorted, addressing controlling interest and offshore super funds, preventing trading in franking credits and dividend streaming and extending the anti-avoidance provisions to combat withholding tax avoidance.
The Government has also legislated tax reform measures to improve the integrity of the business tax system.
Just last December I announced the Government’s intention to introduce measures, including a new civil penalty regime, to deter the promotion of tax avoidance and tax evasion schemes.
The Government has demonstrated its ongoing commitment to ensure the ATO can effectively deal with non-compliance by increasing its compliance resources by around $1.6 billion in 2002-2003 Budget.
The Government is on the front foot when it comes to cracking down on tax cheats and ensuring the integrity of the Australian tax system which is a clear and demonstrated priority.