Review: Taxpayers’ Charter and taxpayer protections
Reviews and reports
Our review into the Taxpayers’ Charter (Charter) and taxpayer protections was undertaken to examine concerns raised in relation to the Australian Taxation Office’s (ATO) adherence to the Charter, its currency and effectiveness. Specifically, stakeholders consider that there are limited avenues for enforcement of the Charter principles, diminishing its effectiveness in affording protection to taxpayers.
As part of the review, we compared the Australian approach with those partner jurisdictions, such as the United States of America, the United Kingdom, Canada and New Zealand. Additionally, a significant body of academic and other research was considered, including those of the Organisation for Economic Cooperation and Development, the International Bureau of Fiscal Documentation and professional bodies
(including the Asia-Oceania Tax Consultants’ Association, Society of Trust and Estate Practitioners and Confederation Fiscale Europeene) that collectively represented more than half a million tax practitioners worldwide. Moreover, the IGT also commissioned the University of New South Wales to research and report on existing taxpayer rights in
Australia and, from that research, drew observations regarding the difficulties taxpayers may face in seeking to enforce their rights.
Overall, we made 4 recommendations with which the ATO has either agreed in full, in part or in principle. However, the ATO’s level of agreement and their accompanying commentary create a level of uncertainty as to how and to what extent the recommendations
would be implemented. Accordingly, to the extent that stakeholder concerns persist, we may undertake a follow-up review to assess the effectiveness of resulting ATO actions and, if necessary, make recommendations for government to consider mandatory reporting of the
ATO’s compliance with the Charter and additional enforceable remedies.