Compliance focus 2009-10: Introduction

Our general approach to improving compliance

We know most people and businesses comply with their tax obligations and receive the social support they are entitled to of their own accord. Our approach to managing and improving compliance reflects this and emphasises:

• using evidence-based intelligence to identify compliance issues through scanning the environment and assessing external and internal information
• committing resources to address priority issues
• addressing issues using a range of appropriate and graduated proactive and reactive responses
• measuring and learning from our actions.

In the majority of cases, we help people and businesses self-manage their compliance. We work cooperatively with them to help get it right, while being able to better identify and deal firmly with those who choose not to do the right thing.

Our compliance model is based on this tailored and graduated approach.

Compliance model

[Larger version of image |Long description]

Making it easy

The majority of people and businesses comply voluntarily. They assess and pay their tax and claim the social support they are entitled to in full and at the right time. We make it easy for them to get it right the first time.

To do this we:

• provide information and self-assessment tools
• offer online e-services to reduce compliance costs, save time and enable people and businesses to do more for themselves, for example:
  • file returns
  • customise a calendar of filing and paying due dates
  • calculate working for families entitlements
  • request forms and guides
  • read our newsletters
• design and identify opportunities to improve our systems to make it easier for people and businesses to interact with us.

Helping people and businesses to comply

We acknowledge many people and businesses want to comply but need some help. We provide a mix of services and practical support to help them self-correct and get it right the next time.

To do this we:

• offer advisory services for individuals, businesses, community groups and intermediaries
• account manage our large, most complex businesses
• identify issues and develop policy proposals for new law
• encourage people and businesses who think they have made a mistake in their return to let us know before we become aware of it. If they tell us before we start an investigation we can significantly reduce shortfall penalties.

Deter by detection

Most people and businesses are compliant, but some are still reluctant.

We will continue to ensure these people know their activities do not go undetected for long. We use a wide range of information to identify indicators of unacceptable behaviour, develop a view of the non-compliance and evaluate the most appropriate response.

To do this we:

• regularly analyse people's and businesses' tax affairs
• issue Revenue Alerts
• investigate people and businesses to confirm the right amount of tax has been paid and social support claimed
• as part of the investigation process, educate people and businesses and provide more comprehensive information to tax advisors so we can have a positive impact on future compliance.

Using the full force of the law

There will always be a small number of people who have decided not to comply. We have a responsibility, and a statutory obligation, to take the appropriate action and respond firmly.

To do this we:

• continually improve our ability to identify and investigate fraud and tax evasion, including exchanging data and working with international agencies
• use a range of collection and recovery methods where people have deliberately failed to file correct returns or pay the right amount of tax
• prosecute people and businesses for tax evasion and fraud.

 

 

Date published: 09 Jun 2009

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