Comments on: Data matching; and cracking nuts with sledge hammers

By: Nicholas Gruen

Nicholas Gruen — Sat, 22 Apr 2006 12:24:27 +0000

Yes DD, that’s right. But I’m pretty sure I’ve seen the ATO quoted as saying that their pursuit of those on low doc loans has turned up people who’ve not put in tax returns. It’s always seemed very peculiar to me. Recall also that many moons ago, it was revealed that Paul Keating got about three years behind on his tax returns. Now you can’t get three years behind on any other bills without consequences. In fact if memory serves correctly he was in credit, but the whole thing was pretty peculiar. Certainly there are no other accounts I know of that one can just let go into abeyance for a few years without consequences.

By: derrida derider

derrida derider — Sat, 22 Apr 2006 11:23:23 +0000

But Nic, the ATO have been doing just this since the year dot. If you lodged at tax return last year but didn’t this year you will get a polite-ish letter from the ATO asking you what’s up. That’s why the Tax Pack has a question asking if this is likely to be your last tax return, so they don’t bug you with an unnecessary enquiry. I suspect that even the media-conscious ATO might think this a bit too much old hat to merit a press release.

There are of course plenty of reasons why someone mightn’t lodge a tax return when they have before – they’ve retired on to a pension, they’re living overseas, they’re dead, etc. So the letter has to be a bit circumspect.

By: Nicholas Gruen

Nicholas Gruen — Fri, 21 Apr 2006 12:10:09 +0000

It might be an explanation of why people haven’t filed a return, but it’s not an explanation as to why the ATO can’t turn up people who’ve not filled in their tax return until they do some audit of people who’ve taken out low doc loans or some other data matching adventure.

By: whyisitso

whyisitso — Fri, 21 Apr 2006 11:35:45 +0000

A lot of this stuff is the usual scare propaganda by the tax office. As well there may well be numerous reasons why people who put in a tax return the year before last might not have last year, including death, working overseas, dropping out of the work force and so on. Another explanation for the lack of 100% follow up is that audit staff may be more profitably used in other investigative areas.

By: Patrick

Patrick — Fri, 21 Apr 2006 06:44:40 +0000

I think Ian’s comment is probably more on track, since I’m not sure how they could use any indigenous data-analysis technique to pick up barristers whose only relation to the ATO is the occasional brief as opposing counsel!

By: Homer Paxton

Homer Paxton — Fri, 21 Apr 2006 06:16:49 +0000

I think the ATO are like Pollies in that they rely on people having very poor memories.

you know I have NEVER heard of one result of these audits yet!

By: Ian

Ian — Fri, 21 Apr 2006 05:54:58 +0000

And the ATO could invest in Law Society Diaries to check off the list of practicing barristers to see which ones arent up to date with their tax affairs.