Improvements suggested around ATO fraud control

In releasing its report into the ATO’s fraud control management, the IGT Ali Noroozi said the review sought to augment and complement improvements the ATO suggested in its own review with regard to some of its risk controls.

Mr Noroozi said one of the recommendations was aimed at the systematic capture of conflicts, including those not declared, and that appropriate action being taken in respect of identified conflicts and ensuring that former colleagues of current ATO officers do not obtain information or exert influence by reason of their previous association.

Other improvement suggested by the IGT included transparent reporting of interventions by senior officers in particular cases, bolstering the independence of the ATO’s audit and risk committee as well as a number of recommendations relating to medium to high risk roles.

“There should be periodic rotation of officers in senior management or higher risk roles and the induction of external senior recruits should be bolstered to focus on ethical standards and highest level of integrity that an organisation such as the ATO should exemplify,” Mr Noroozi said.

Mr Noroozi said the report also considered aspects of the ATO’s management of external fraud risks and complementing other initiatives aimed at addressing tax and financial crime.

He said certain case studies examined the ATO’s response to alleged fraud such as those in the precious metals industry where $2.5 billion of GST revenue was estimated to have been at risk.

Further, Mr Noroozi said a recommendation was made in another recently released IGT review, GST Refunds, to allow effective investigation of fraud risks in appropriate cases while ensuring that bona fide GST refunds are issued promptly.

“In this review, I have made recommendations to facilitate earlier risk identification and real time action on perpetrators of fraud,” he said.

In addition, the IGT review also considered ATO’s collaboration with other agencies to combat serious tax crime.

“I have recommended that the government review current interagency collaboration including optimising models for sharing specialist capabilities and information as well as the management, structure and funding of interagency taskforces,” Mr Noroozi said.