Self-assessment |  Your right to privacy |  Decisions explained

They may say that there is nothing certain in this world but death and taxes, but that doesn't stop people trying to avoid them both – and as one joker put it, thankfully only the latter is annual. Although we all know that having to pay tax is inevitable, being dealt with fairly by the government's collection agency – the Tax Office – is a natural expectation.

The Tax Office says it is committed to making sure that everyone 'meets their obligations under the tax laws', and in doing so make sure those who do pay their fair share 'are not disadvantaged by those who do not'. It publishes a 'taxpayers' charter' on its website (see the Tax Office charter here) which explains what the taxpaying public's obligations are, but there are also obligations that the Tax Office must adhere to – especially when anyone is dissatisfied with its decisions or actions.

Self-assessment
The federal tax system is based on what it calls 'self-assessment', which just means that it's up to each taxpayer to give the Tax Office the information it needs to work out their liability. Of course it is not a system that totally relies on open honesty, as checks have been put in place to make sure people comply (the tax payments summary that your employer gives you for example also goes to the Tax Office – see the information on data matching) and any claim you make to reduce your tax needs to be backed-up with evidence.

The Tax Office has given itself a two-year window in which it can go back and check your information (and four years for some types of taxpayers), although there's no time limit if it suspects fraud or tax evasion. There are fines and penalties for not toeing the line, but the Tax Office says the aim is to have as many people as possible 'choosing to comply' with the tax laws.

Those tax laws however can be very complex. The Tax Office provides a vast amount of information on its website, but the complexity of our country's tax laws can sometimes make finding the right information difficult.

Although the Tax Office is the official body charged with running the taxation system, the constant changes to legislation and regulation make it difficult to keep on top of what is expected. Add to that the continual interpretation and re-interpretation of these regulations by the Tax Office itself, not to mention the legal decisions of the High Court, the Federal Court and the Administrative Appeals Tribunal, and the scope and application of the tax law can seem an ever-moving target.

As the tax system stands, people need all the help they can get. The Tax Office recognises this, and accepts that people need help over tax issues – which is where the services of accountants, tax agents and other advisers can be invaluable. Generally only a registered tax agent can charge a fee (and the Tax Practitioners Board provides a searchable list of registered agents) but you can get help from anyone. Also, see here to get a run down on what you should expect from your tax agent.

Your right to privacy
We all have a right to privacy, and the Tax Office is obliged to do all it can to protect that. After all, it will have a lot of information about you, and gets more information from other sources. But it has an obligation to keep that information confidential.

The law does allow it to disclose certain information to others for specific purposes, such as to determine an eligibility for government benefits. But if you think the Tax Office has gone too far and that your privacy or confidentiality has been compromised by its actions, there are options for actions to take. Talk first of all to the tax officer you may have been dealing with, or complain to their manager. The Privacy Commissioner may also be able to help.

Tied in with these confidentiality issues is the right you hold as an individual to access the information the Tax Office holds about you. The Freedom of Information Act gives you that right, and you can also access the documents that may have helped the Tax Office come to decisions about your tax situation, such as public rulings and Tax Office guidelines. Under this Act, you also have the right to correct information that you believe is incomplete, incorrect, out of date or misleading.

The disclosure of certain documents may not be possible, as some are exempt from the Freedom of Information Act, such as information that 'could reasonably be expected to prejudice an investigation' or that would necessarily involve disclosing information about someone else.

Ask first, but if you need to make a request for information under the Freedom of Information Act, you have to make it in writing, and there may be a fee. These are listed in the application form, which you can download here. And don't believe that old joke about the man who, under Freedom of Information rules, applied to find out if there was a file on him – the answer he got back was 'There is now'.

Decisions explained
You have the right under law to get a free written statement setting out the reasons for decisions the Tax Office makes about your tax affairs. It is also legally bound to provide a review of most decisions, and you can apply to obtain a review here.  If you're still not satisfied, you could get help from the Commonwealth Ombudsman.

The Freedom of Information Act also gives you the right to get a written explanation of Tax Office decisions on freedom of information requests.

Last reviewed 26/07/12

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