IGT RELEASES REPORT ON ATO SERVICES FOR TAX PRACTITIONERS
The Inspector-General of Taxation (IGT), Mr Ali Noroozi, today publicly released the report into Debt Collection by the ATO,which has initiated as a result of the consistent escalation of tax debt and (alleged) unfair recovery actions taken by the ATO. The report also focuses, more broadly, on the ATO’s relationship with the 55,000 registered tax agents and business activity statement agents (together referred to as tax practitioners).
Collectible tax debt has grown over the last decade or so to $20 billion in 2013/14. The ATO has acknowledged that is previous debt collection approach has been ‘random and ad hoc’.
A range of stakeholders expressed strong opposition to the ATO’s use of external debt collection agencies to recover tax debts, amongst other concerns.
” I have recommended that the ATO make public its reasons for using external debt collection agencies and transparently share the intended benefits and outcomes to assuage concerns”, Mr Moroozi.
It is developing new processes which aim to use behavioural analysis to determine the “right action at the right time” based on the circumstances of the tax payers.
Other areas reviewed included the ATO’s decision making and training framework for debt officers.
Junior officers have been authorised to make important decisions, without senior officer approval, such as garnishing taxpayer bank accounts up to $50,000.
” I have recommended a range of improvements to decision-making processes and staff capability, including requiring team leader approvals in more instances, training to increase commercial awareness and beter assusrance of staff adherence to policies,” Mr Ali Naroozi said.
Ref: IGT Website- Debt Collection Review
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