Statement of Intent 2007-10: Part four - Forecast departmental financial statements and performance objectives
Output expense 5 - Taxpayer audit
Description
This output expense provides services to ensure that the revenue base for funding government programmes is protected. This is achieved by verifying that taxpayers are meeting their obligations through audit activity across all taxpayer groups, specifically targeting risk areas, and taking appropriate enforcement action when obligations are not being met.
Activities undertaken:
- identifying risks to revenue and designing audit activities accordingly
- verifying that tax obligations have been met by auditing a selection of taxpayers
- managing tax litigation.
Performance measures
The following measure applies to all outputs in this output expense.
Quality
We will ensure that at least 90% (85%) of all cases completed meet our quality standards.
Activity forecast
We expect to complete 977,000 to 1,080,000 (922,000 to 1,030,000) hours conducting all audit activities, 194,000 to 215,000 (172,000 to 200,000) of these hours will be related to large enterprise audit activities. These audit hours will be reported separately.
Output 5.1 Individual and small- and medium-sized enterprise audit
Description
This output involves the audit of businesses with a turnover of up to $100 million (excluding groups in the large enterprise segment). It includes audits of duties, non-residents, investments and salary and wage earners.
Performance measures
Quality
We will assess at least $600 ($580) per hour for all audit activity, including aggressive tax issues and tax evasion.
Timeliness
On average, we will complete:
- general audits within 6 months
- all risk-based audits within 14 (12) months
- disputed cases (excluding aggressive tax issues) within 18 months.
We will ensure that at least 90% of all open cases (excluding aggressive tax issue cases) are less than 24 months old.
Output 5.2 Large enterprise audit
Description
This output involves auditing and providing services to large businesses with a group turnover of more than $100 million, plus other specific groups.
Performance measures
Timeliness
On average we will complete risk based audits within 14 (17) months.
We will ensure that at least 85% of all open cases (excluding disputed open cases) are less than 24 months old.
Output 5.3 Litigation Management
Description
This output involves the management of litigation of disputed tax cases, including the requirement to state the case through to resolution by the courts.
Performance measures
Quality
We will report any adverse judicial comments made on the department's conduct of litigation.
Timeliness
We will ensure that 100% of all timetable requirements will be delivered as imposed by the courts.
Activity forecast (demand driven)
We expect to finally resolve an estimated 75 to 100 litigation cases.
Cost
During 2007-08, this output expense will be provided within the appropriated sum of $152,889,000.
| Year (Budget) |
Revenue Crown $000 |
Revenue other $000 |
Total revenue $000 |
Cost $000 |
|---|---|---|---|---|
| 2007-08 | 151,538 | 1,351 | 152,889 | 152,889 |
| 2006-07 | 123,428 | 919 | 124,347 | 124,347 |
| 2005-06 | 117,842 | 919 | 118,761 | 118,761 |
During 2007-08, the costs of outputs to be supplied within this expense are:
| Individual and small to medium enterprise audit | $112,146,307 |
| Large enterprise audit | $29,906,403 |
| Litigation management | $10,836,290 |
Other pages in: Part four - Forecast departmental financial statements and performance objectives
- Statement of responsibility
- Statement of accounting policies
- Notes
- Forecast service performance
- Output expense 1 - Policy advice
- Output expense 2 - Services to inform the public about entitlements and meeting obligations
- Output expense 3 - Services to process obligations and entitlements
- Output expense 4 - Management of debt and outstanding returns
Date published: 20 Jun 2007
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