Compromised TFNs

From our November 2010 issue

 

The Commonwealth Ombudsman recently released his report on the ATO’s treatment of taxpayers with complaints about compromised Tax File Numbers (TFNs).

The report considered 8 case studies of situations in which the taxpayer’s TFN had either been compromised or incorrectly linked by the ATO to another person’s TFN.

The Ombudsman noted in his report that “[t]he action taken by the ATO to deal with these complaints was unreasonable. Our investigations have shown a systemic failure by the ATO to properly recognise and respond to the issues faced by taxpayers”.

“When this unique identifying number is compromised the impacts on a taxpayer can be significant. It can cause delayed refunds and payments, debts being incorrectly attributed to the taxpayer or problems with other agencies like Centrelink, where information is exchanged.”

Such situations are of concern to many taxpayers, due to the potentially serious consequences. In addition, situations in which a taxpayer’s TFN has been compromised as a result of ATO error are less likely to be quickly identified.

Taxpayers who are concerned that that they may have been affected should contact their tax agent or the ATO via its dedicated Call Centre, or should consult the ATO’s fact sheet on this issue (available on www.ato.gov.au).
In accordance with the Ombudsman’s recommendations, the ATO is currently:

  •  investigating measures by which to revise their systems to prevent such errors occurring in the future; and
  •  revising its response to taxpayers whose TFNs may have been compromised.

 

NOTE
If you are concerned that your Tax File Number may have been compromised, please contact either your tax advisor or the ATO.

 

 

 

 

 

This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.