ATO’s growing data access ‘alarming’, says TaxTank CEO
The software firm founder has raised serious concerns about the ATO's access to private taxpayer information.
TaxTank founder Nicole Kelly has called for better oversight and transparency over the management of taxpayer data, following recent reports that the ATO issued incorrect liability amounts due to faulty automated systems.
https://www.accountantsdaily.com.au/technology/20166-ato-software-bugs-revived-false-on-hold-debts
Kelly said while the ATO's increased access to personal data is aimed at enhancing compliance and catching tax evaders, it also raises "huge privacy concerns".
The finance and tax software provider has called on taxpayers to reflect on how the ATO supports taxpayers as the new financial year starts.
Taxpayers should be questioning the ATO’s right to their private information as many taxpayers are unaware this could lead to unexpected fines and consequences in the future, Kelly said.
“Many Australians are unaware of the ATO’s extensive reach into their financial lives, which is troubling,” she said.
“Transparency and clear guidelines are essential to maintaining public trust. Taxpayers should know what data is collected, how it’s used and why.”
The errors occurring in the ATO's systems last year which impacted 603 taxpayers highlights the dangers of unchecked data access and automation with proper safeguards, according to Kelly.
She believes the ATO’s growing access to taxpayers’ personal information is an unnecessary invasion of privacy and the ATO is making false assumptions on incorrect tax returns.
In a statement to Accountants Daily, she said the ATO shouldn’t assume taxpayers are trying to “cheat the system.”
The ATO should recognise incorrect tax returns may be occurring due to the system being too difficult to navigate and comprehend.
“Missing from their annual ‘crackdowns’, whether targeting property investors, crypto enthusiasts, shareholders, side hustlers or influencers, is an acknowledgement of the tax system’s complexity, the clunkiness of the MyTax portal they push so intensely and the lack of education for everyday Australian navigating their taxes.”
Kelly said tax agents are “frustrated” with the ATO’s order of business and poor use of their resources.
“Tax agents are understandably frustrated with the ATO’s pursuit of trivial, outdated debts, creating unnecessary administrative work,” said Kelly.
“These resources could be better used addressing more pressing tax issues.”
With the ATO’s pursuit to access a wider range of taxpayers’ financial data, a “microscope” approach is being taken which will invade people’s privacy even further.
Kelly said the most alarming privacy encroachment is the ability for the ATO to access property investor bank data, making her question when the invasive scrutiny will end.
“Are we heading towards a future where tax just happens, with every transaction under the ATO’s microscope?”
“The idea that every financial move could be tracked and analysed is a chilling thought, especially without robust safeguards and transparency,” she said.
Kelly advocates for the ATO and government to invest in taxpayer education, rather than being solely focused on compliance.
“Surely it’s time for the ATO to rethink its strategy and ensure that its vision of a digital-first tax system is balanced with respect for taxpayer privacy and rights.”
