Fresh ATO probe launched after Cranston allegations

The Inspector-General of Tax says it’s inevitable probes will address fraud allegations linked to senior officers.

Inspector-General of Taxation Ali Noroozi. Picture: Adam Knott

Inspector-General of Taxation Ali Noroozi will investigate the ATO’s processes and practices, after deputy commissioner Michael Cranston’s son Adam was charged over an alleged $165 million scam.

Michael Cranston is also to be charged with abuse of office for allegedly accessing information in a bid to help his son.

Mr Noroozi said his launch this morning of a review into the tax profession “in no way suggests that we will not be conducting a review relating to the recent allegations of tax fraud linked to senior ATO officers”.

“In fact, it now seems inevitable that we will expand our work program to do such a review,” he said.

“We are working on its timing and scope.

“The community is welcome to continue providing feedback on these issues.”

Mr Noroozi foreshadowed he might review the ATO when he appeared before Senate Estimates last Tuesday.

“For example, one of the things we have considered looking at is their procedures, structures and practices on how they detect fraud, particularly where an ATO officer may be involved,” Mr Noroozi told the committee.

“But, again, we need to be careful about how we might do that.

“We have to ask: will that prejudice any current investigations?

“Other issues that have been raised with us are: were their risk assessment techniques working appropriately?

“Was this issue identified expeditiously and appropriately?”

Mr Noroozi’s separate review of the tax profession was announced in late January as part of his regular work program following a request by Tax Commissioner Chris Jordan.

It will examine digital disruption of the profession, which is relied on to prepare returns by three quarters of individuals and more than 90 per cent of companies.

The profession’s reliance on the ATO’s computer systems, which suffered a major outage in early February, will also be examined.