The Taxation Office - Essay Example

In this paper, the rights and powers of the Australian Taxation Office have been compared with that of two countries, i-e; the United States and Germany the similarities and differences between them have been analyzed.

In Australia, the Tax Office is part of the Treasury Portfolio, and the Commissioner of Taxation has the status of Secretary of a Department.

The main function of the Australian Tax Office (ATO) is to administer legislation imposing taxes and excise (other than customs duty). It also works with appropriate departments on policy matters relating to tax and excise. The ATO has the responsibility for administering a range of tax and superannuation legislation vested by Parliament in the Commissioner of Taxation. The Commissioner's authority to administer each levy is written into the law relating to that levy, as are his general responsibilities, discretionary powers, and rights (The Commissioner of Taxation, (n.d.), accessed 25.10.05). In Australia, the Tax Office generally asks the taxpayers to co-operate with it voluntarily and to disclose full information completely and honestly.

But Additionally, it has specific information-gathering powers for some taxpayers who should insist that the Tax Office exercise those powers, even where there is no suggestion of tax avoidance - in particular, a professional should not voluntarily disclose confidential information to the Tax Office but insist upon its exercise of these powers. To avoid tax evasions, the Tax Office has the right of full and free access to all buildings, books, and documents for the Income Tax Assessment Act, and is allowed to require any person to give it such information, as it requires or to attend and give evidence before it.

The Act also states that the occupier of a building or place entered or proposed to be entered by the Tax Office shall provide the Tax Office with all reasonable facilities and assistance for the exercise of its powers. Once an audit commences the taxpayer may want to know how to interact. Just because it is necessary to assist the Tax Office doesn't mean one is subservient to it. How much information should be provided, or withheld because it is protected may be an issue, particularly if the matter may end in court?

After the audit, the taxpayer may undertake a Freedom of Information Act search to find out just what the Tax Office thinks of it. Many taxpayers will find that they have underpaid primary tax and, as a result, apart from having to pay that tax, will be subject to penalties. Their solicitor can document payment arrangements with the tax Office and perhaps prepare mortgages and other charges to secure such payments (Rockliffe Solicitors & Barristers, accessed 25.10.05).