Mr Murphy asked the Treasurer, upon notice, on 18 September 2003:

(1)  Further to the answer to question No. 1597 (Hansard, 12 August 2003, page 18168), how is the Commissioner of Taxation encouraging debate in the community and within the Australian Taxation Office (ATO) so that he might better balance resources given to him by the Government to achieve the greatest compliance with taxation laws especially as they relate to members of the legal profession.

(2)  Is the ATO adequately staffed and adequately financially resourced; if not, what is the Government doing to assist the Commissioner of Taxation maximise his opportunities to collect the revenue due to the Commonwealth.

(3)  How are compliance decisions made by the Australian Taxation Office and the Commissioner of Taxation.

(4)  Has the Commissioner of Taxation sought feedback from the staff of the Australian Taxation Office regarding their concerns; if so, (a) what was the nature of that feedback, and (b) has there been any negative feedback; if so, what are the details.

Mr Costello —The answer to the honourable member's question is as follows:

(1)  The Commissioner of Taxation's Compliance Program 2003/04 describes the risks of the self-assessment system and how the resources of the Australian Taxation Office (ATO) are used to treat them. In publishing these risks and describing what is being done about them, the ATO is demonstrating that the tax system is being managed in an open and accountable way, and that it is balancing education and enforcement functions in a way that is acceptable to the community and sustainable in the long term. The Commissioner invites feedback on how the tax system is being managed. As well, whenever possible, the ATO engages community representatives and other specialists in decision-making forums, including rulings panels and accountability and integrity committees. The Commissioner has identified the legal profession as one of a number of areas of risk requiring attention, and is utilising a range of education, enforcement and consultation strategies to effect improvements in compliance.

(2)  Yes. The ATO has been funded in accordance with the Output Pricing Agreement, which provides an increased funding base of $1,885.5 million over the three years, 2003-04, 2004-05 and 2005-06. The Agreement includes funding for specific strategies outlined in the Compliance Program 2003/04.

(3)  The ATO's compliance strategies seek to maximise the number of people who choose to comply by making it as easy as possible for people to understand and meet their obligations and by ensuring there are approaches in place to deter non-compliance. Risk assessment is a key factor in determining the nature and timing of activities undertaken. The ATO also seeks to ensure its responses are appropriate and proportionate to non-compliance activities it detects, including the firmest possible enforcement response to those who deliberately set out to avoid their obligations.

(4)  As mentioned in QoN 1597, the Commissioner has not received complaints about the legal profession from staff via the “ATOconcern” service.