15/05/2017 Client Centred Tax Administration: Getting the balance - - PDF document

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Client Centred Tax Administration: Getting the balance right

Presented by Emma Rosenzweig Acting Deputy Commissioner Small Business Australian Taxation Office May 2017 2

Design Principles of Administration

• Make it easy to comply and difficult not to
• Provide certainty
• Influence social norms through the use of behavioural insights
• Involve taxpayers and stakeholders in the design and delivery
• Use natural systems

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What is Reinventing the ATO?

“ Reinvention is about challenging and stretching ourselves, experimenting with different ways of working and trying new things that push us towards improvements.”

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Every Year Counts

Services and support for tax professionals

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Helping Tax Professionals

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Services and Support for Tax Professionals

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New Portal Homepage

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New Client Summary Page

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Visibility Choice Relevance Control

Communication Preferencing

Services and support for small business

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Transforming the small business experience

From To

Minimal engagement at registration Proactive early engagement and education Expecting small businesses to know what to do, when and how Timely prompts with information on ‘what to do, when to do it and how to do it’ Using risk models to identify problems after they arise Using data for services to prevent problems ‘Enforcement’ compliance approach Assurance engagement with assistance to build understanding and compliance Responding after objections and disputes arise Early engagement to listen, clarify potential issues and resolve disputes

“From cops to coaches…things are changing in the Australian Taxation Office – and that change has come from within.”

(Stephen Easton - The Mandarin)

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The ATO app

Access tax & superannuation information on the go Features include:

 online services including

myTax

 voice authentication  tools and calculators  reminders and alerts  access to ABN Lookup  business performance

check tool benchmarks

 send expense information

to you over email or pre-fill

• From 1 July 2017, small businesses will only be required to

report:

• 1A GST on sales
• 1B GST on purchases
• G1 Total sales.

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Simpler BAS

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• All employers can choose to start STP reporting from 1 July

2017 if they are using an STP certified product.

• From 1 July 2018, employers with 20 or more employees must

be part of the STP reporting.

Single Touch Payroll (STP)

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Designed in collaboration:

used at different stages

• f business

prevent cash flow

problems

intervene early to get

back on track

empowers business to

take action

simple language and

concepts

Cash flow management education

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 New-to-business

welcome email

• whole of

government support

• understand

registrations

• plan for success
• go online, save time
• find help & support

 quarterly emails linked

to education tips

 free assistance

programs online & face to face

New business – educational contact through first year

Presented by Emma Rosenzweig Acting Deputy Commissioner Small Business Australian Taxation Office May 2017

Dealing with those who don’t do the right thing

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Cash and Hidden Economy

• It is only a minority of small

businesses that don’t comply

• Internationally, all jurisdictions

find this a challenge and address it in various ways

• It is multi-faceted and ever

changing, driven by evolving influences

• The ANAO has found that the

ATO’s approach is consistent with international best practice, sound and increasingly cost effective

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• 1. Perception – low likelihood of being caught or consequences far

less than benefits of non-compliance

• 2. Motivation – self interest and customer demand
• 3. Rationalisation of behaviour and a community norm –

behaviour appears to be victimless The level of guilt felt by participants is greatly reduced where the perceived fairness of the system is low

Drivers of behaviour

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Community engagement is important

• over 10,000 referrals were made to our tax evasion referral

centre last year on cash economy matters from members of the community

• Report a concern at: www.ato.gov.au/reportaconcern
• Ensure a level playing field

Report a concern

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Transparency of Tax Debt

2015/16 Tax Liabilities - All Entities

Paid on time Not paid/late

2015/16 Tax Liabilities - Small Business

Paid on time Not paid/late

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Transparency of Tax Debt

2015/16 Total Collectable Debt $19.2 billion

Small Business Collectable Debt - $12.5 billion Remaining Collectable Debt - $6.7 billion

With Exclusions

Approximate Small Business Debt Population 100,000 Approximate Debt $7 billion

Thank You and Questions

Presented by Emma Rosenzweig Acting Deputy Commissioner Small Business Australian Taxation Office May 2017