Tax Identity Fraud: An Own Initiative Investigation Interim Report

Tax Identity Fraud: An Own Initiative Investigation Interim Report

This is the interim report of our own initiative investigation into Tax Identity Fraud, focusing on the importance of bank account integrity. The report focuses on the ATO's risk management controls to prevent fraudsters from changing the bank account details on legitimate taxpayers' ATO accounts, which is a fundamental step in obtaining fraudulent refunds from the tax system.

Following the commencement of our investigation, the IGTO received numerous submissions from the taxpayer and tax practitioner community that raised concerns about the ATO's lack of action in detecting and preventing tax identity fraud. The IGTO also investigated ATO actions taken in response to potential tax identity fraud that were the subject of taxpayer disputes (unresolved complaints).

The IGTO makes a total of thirteen (13) recommendations for ATO improvement in this interim (Phase 1) report.