Detect and enforce compliance
Our compliance program
Our compliance program concentrates on areas identified as having a high risk of non-compliance, with audit and investigation projects focusing on:
identifying and contacting individuals or businesses not currently registered within the tax system, but who are most likely to have a liability
identifying clients who may have understated their liabilities through a program of desk and field audits
identifying clients who do not satisfy the eligibility requirements of the First Home Owner Grant and First Home Plus schemes
prosecuting serious breaches of the legislation
ensuring clients with an obligation to lodge returns do so in a timely manner
enabling early identification and follow up of clients with overdue payments.
Detecting non-compliance
We detect non-compliance through a range of activities, including investigations, field visits and other audits, IT assisted research, risk analysis, data matching and data mining.
We regularly exchange information and audit results with external agencies, including the ATO, other State and Territory Revenue Offices and Land and Property Information. We also conduct ad-hoc matching programs and exchange information with many other agencies.
The sharing of information with other Revenue Offices and with the ATO across all taxation laws we administer is carried out in accordance with Part 9 of the Taxation Administration Act 1996 (NSW), similar legislation in other States/Territories and under section 355-65 of the Taxation Administration Act 1953 (Commonwealth). The sharing of information related to disclosures for First Home Owner Grant purposes is in accordance with Item 2, Table 4 of section 355-65(5) of the Taxation Administration Act 1953 (Commonwealth).
Case selection for audit and investigation
Cases for audit and investigation are selected from a number of different sources. These include:
voluntary and anonymous disclosures reported to the Compliance line
validation and exception reporting to identify anomalies with information presented by clients
referrals from other agencies
verifying our records against third party information to identify potential cases of non-compliance
a random program to ensure a cross section of clients is reviewed.
Our Investigations factsheet provides you with information about the audit and investigation process, your rights and obligations and avenues of appeal if you are dissatisfied with an assessment of liability.
Your obligations during an investigation
During an investigation you are required to:
give the investigator reasonable assistance and facilities
give complete and honest answers and explanations to questions
provide prompt, full and free access to all relevant information, records, documents, data and systems as required.
Voluntary disclosure
If you have not complied with relevant legislation you are encouraged to make a voluntary disclosure. Voluntary disclosures of non-compliance if made prior to, or during an investigation may result in a reduction of penalties.
More information
Tax specific compliance programs
