The Commonwealth and Taxation Ombudsman, Prof. John McMillan, today released his annual Taxation Ombudsman Activities Report, providing a snapshot of the taxation complaints and issues dealt with during 2005.

The main focus of the report is the practical assistance the office provides to taxpayers to find sensible solutions to their tax problems. Another theme that runs through the report is the complexity of the tax system and the impact that this has on taxpayers and practitioners, as well as on the Australian Taxation Office (ATO) and agencies like ours.

The report highlights particular problems areas, such as:

• difficulties encountered by taxpayers with superannuation and the ATO’s accounting system
• issues around ATO record keeping
• problems that can arise from automated mass processing.

The reports also looks at the Taxation Ombudsman’s role in the context of tax administration and relationship with the ATO’s other external scrutineers – Parliament, the Board of Taxation, the Australian National Audit Office and the Inspector-General of Taxation.

Case studies in the report provide examples of complaints handled by the Ombudsman. Topics include:

• referral and advice
• working around a problem
• providing independent assurance.
• consistency of decision making
• unanticipated consequences of complex legislative schemes
• limits of government responsibility.

Future directions for the office in the tax area are included, together with an outline of our project program. Most of these projects are either completed or progressing well and due for finalisation shortly. Our project program for 2006–07 will be available in early July.

The report is available in the publications and media area of www.ombudsman.gov.au().

Date of release: 22 June 2006