Noted. There are only limited circumstances when a notice of assessment (NOA) is not issued to an individual and a very small number of taxpayers are affected (less than 100). Currently ATO systems are not configured to issue a NOA automatically when a non-resident individual: only has income that is subject to foreign resident withholding, such as interest or dividends; an amount was not withheld by the payer or the individual wants to pay that amount themselves; and the individual has no other taxable income. The ATO is considering what can be done to provide more certainty to these individuals. In the interim, taxpayers can request a nil NOA to issue if they have lodged a return declaring only the amounts that are subject to withholding tax and would have had withholding tax deducted if they were aware of their residency status. Recommendation 12 The Committee recommends that the ATO, to better inform public and policy debate and increase community awareness, should publish in 2017 its revenue gap measures and report the total revenue gap estimate and assessments for different community sectors on its website as they become available, and in the 2016–17 Annual Report. Agree The ATO will continue to periodically refresh already published tax gap estimates, as well as release new estimates once we are satisfied they are reliable, credible and meaningful. We intend to report all released tax gap estimates in the 2017-18 Annual Report. Recommendation 13 The Committee recommends that the ATO’s Annual Report should include a more detailed differentiation of data on unrecoverable debt, including by distinguishing between the amounts of debt written off as unrecoverable at law or that is uneconomical to pursue Agree. The ATO will report in the 2017-18 Annual Report debt written off as unrecoverable at law and that which is uneconomical to pursue. Recommendation 14 The Committee recommends that the ATO provide more detailed information in its Annual Report about its investment in compliance activity relative to revenue outcomes under debt recovery activities, for both funded pre-existing ATO activities and for indirect additional revenue commitments.
Noted. There are only limited circumstances when a notice of assessment (NOA) is not issued to an individual and a very small number of taxpayers are affected (less than 100). Currently ATO systems are not configured to issue a NOA automatically when a non-resident individual: only has income that is subject to foreign resident withholding, such as interest or dividends; an amount was not withheld by the payer or the individual wants to pay that amount themselves; and the individual has no other taxable income. The ATO is considering what can be done to provide more certainty to these individuals. In the interim, taxpayers can request a nil NOA to issue if they have lodged a return declaring only the amounts that are subject to withholding tax and would have had withholding tax deducted if they were aware of their residency status. Recommendation 12 The Committee recommends that the ATO, to better inform public and policy debate and increase community awareness, should publish in 2017 its revenue gap measures and report the total revenue gap estimate and assessments for different community sectors on its website as they become available, and in the 2016–17 Annual Report. Agree The ATO will continue to periodically refresh already published tax gap estimates, as well as release new estimates once we are satisfied they are reliable, credible and meaningful. We intend to report all released tax gap estimates in the 2017-18 Annual Report. Recommendation 13 The Committee recommends that the ATO’s Annual Report should include a more detailed differentiation of data on unrecoverable debt, including by distinguishing between the amounts of debt written off as unrecoverable at law or that is uneconomical to pursue Agree. The ATO will report in the 2017-18 Annual Report debt written off as unrecoverable at law and that which is uneconomical to pursue. Recommendation 14 The Committee recommends that the ATO provide more detailed information in its Annual Report about its investment in compliance activity relative to revenue outcomes under debt recovery activities, for both funded pre-existing ATO activities and for indirect additional revenue commitments.
p2017-t232157-2016.docx