Review of the ANAO audit report No.37 1998-99 on the management of the Tax File Numbers
Media Releases

Media release: 8 March 2000

FRAUD AND TAX

The growing use of fraudulent documents and its impact on tax administration will be under the spotlight again in Parliament.

The Australian Federal Police and the Health Insurance Commission will be questioned on ways to improve the Tax File Number system and to reduce identity fraud when the House Economics Committee holds its next TFN hearing in Canberra on Thursday 9 March 2000.

Committee Chairman, Mr David Hawker MP, said 'The work of the AFP and the HIC means that they are both in a position to assist with key issues of this inquiry'.

'The AFP has the primary law enforcement responsibility for investigating criminal offences against Commonwealth laws. In 1998-99, AFP investigations uncovered cases involving false passports, birth certificates and drivers licences that were all used to commit major crime against the Commonwealth. Their taxation investigations also revealed millions of dollars of tax evasion. As such, the AFP is ideally placed to comment on ways in which tax fraud can be reduced and Proof of Identity procedures can be improved across the Commonwealth'.

Similarly, the work of the HIC means that they can provide insights into addressing the problems raised in the Auditor-General's report on Tax File Numbers.

'The large client base of the HIC means that their internal procedures and systems administration provide a good comparison with the ATO' said Mr Hawker. 'The HIC is in a position to be able to comment on data quality, record keeping practices, fraud prevention methods, proof of identity processes and measures to ensure the privacy of clients.'

'The Committee's hearings are an important step towards identifying better practice in managing Tax File Numbers. The ATO must embrace this process to ensure that better practices are adopted in order to overcome the problems of the TFN system'.

Information on the progress of the inquiry is available on the Committee's website at: http://www.aph.gov.au/house/committee/efpa/TFNaudit/tfnindex.htm

Ends // 8 March 2000

Further information:
David Hawker MP (Chairman) 02 - 6277 4100 (Parliament House)
Melissa Stutsel (Principal Research Officer) 02 - 6277 2319
Email: EFPA.Reps@aph.gov.au

Public Hearing Program

Date:   Thursday 9 March 2000

Time:   10:00am - 11:00am    Health Insurance Commission

             11:00am - 12:00pm    Australian Federal Police

Location:     Committee Room 2R2, Parliament House, Canberra

Committee Membership 39th Parliament

Chairman: Mr David Hawker MP
Deputy Chairman: Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Ms Anna Burke MP
Ms Teresa Gambaro MP
Mrs Kay Hull MP
Mr Mark Latham MP
Mr Christopher Pyne MP
Hon Alex Somlyay MP
Dr Andrew Southcott MP

For a copy of the Audit Report No 37 - Management of Tax File Numbers:

Contact the Australian National Audit Office (02 6203 7685) or their website http://www.anao.gov.au

Or Government Info Shops or their website http://www.ausinfo.gov.au

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