Tax Office lapse on offshore havens exposed

A significant gap has been identified in the Tax Office’s efforts to catch cheats who use offshore tax havens.

It was exposed in a new report, published by the Auditor General.

The report notes that the Tax Office has adopted a risk management framework for its compliance program.

This is meant to identify and assess risks associated with tax havens.

Mitigation strategies are then developed.

“This (system) comprises a combination of oversight committees, intelligence areas and compliance staff from a number of areas,” the report says.

It adds that this is meant to work at both formal and informal levels.

“However, at a formal level the key steering committee, responsible for determining strategic direction has not yet met, ” the report adds.

So it is not providing the strategic direction that is expected of it.

“The Tax Office can improve its governance of tax haven risks by ensuring that this key strategy setting committee meets on a regular basis, in accordance with the terms set out in its charter,” the Auditor General said.

The Tax Office has accepted this advice.