Scammers pretending to be from the ATO are calling people and telling them they have a tax debt that they need to pay straight away. We will use phone, email and SMS to contact you. But we will never: send a pre-recorded message to your phone.
Scammers often pretend to be from trusted organisations like the ATO. We will sometimes contact you by phone, email, SMS and post. If you're not sure whether it's really us, do not reply. You should phone us on 1800 008 540 to check.
While the ATO does phone and send text messages to individuals, it will never ask you to make a payment to nullify an arrest warrant, nor will it threaten you with revoking your Tax File Number, as is done in some scams. It also won't ever call you using prerecorded messages.
However, depending on the severity of the deception and the benefit that has been obtained, the ATO may refer your case to the Commonwealth Director of Public Prosecutions where you may be charged with serious criminal offences that can result in terms of imprisonment.
Our most serious tax crime matters are dealt with by the cross-agency Serious Financial Crime Taskforce. We prosecute offences under the Tax Administration Act and work with other agencies on tax-related fraud cases.
The ATO can search your property without a warrant
The Tax Office has the power to forcibly enter a property and search for documents without a warrant.
We receive data from a range of sources, including banks, financial institutions and other government agencies. We validate this data and match it against our own information to identify where people and businesses may not be reporting all their income.
November 2021 phone scam – fake tax debt
Scammers pretending to be from the ATO are calling people and telling them they have a tax debt that they need to pay straight away. We will use phone, email and SMS to contact you. But we will never: send a pre-recorded message to your phone.
An ATO spokeswoman said phones were only accessed with a warrant under the Crimes Act, or with written consent from the owner. "For operational reasons, we do not disclose information about when different tools are used as part of our operations," she said.
Tax fraud is a serious criminal offence that carries a maximum penalty of 10 years imprisonment. Ignorance of the law is not a defence. Neither is failing to get proper legal advice.
Large data breaches
We want to assure you that ATO systems have not been affected.
Phone calls from the real ATO will show as 'No caller ID' on your mobile phone. Hang up on anyone who says they are from the ATO and threatens to arrest you. You can phone us on 1800 008 540 to check if we needed to speak to you.
However, there are circumstances in which the IRS will call or come to a home or business. These include when a taxpayer has an overdue tax bill, a delinquent (unfiled) tax return or has not made an employment tax deposit.
The ATO will never: issue a pre-recorded message (robocall) to your phone. present a phone number on caller ID. threaten immediate arrest, jail or deportation for unpaid tax debts.
According to law, the tax department is required to take permission from the ministry of home affairs to tap phones, which the official said is usually forthcoming.
Any information you provide must be accurate and complete. We will generally make a record of our conversations (including meetings and interviews) and may: provide you with a written summary of the interview containing key issues if you ask for one.
two years for most individuals and small businesses. two years for most medium businesses (see note 2) four years for all other taxpayers (see note 3).
The ATO can, and will, check your bank accounts, cross reference payments against an ABN and confirm missing income from your tax return.
We pass approximately 100,000 records to Centrelink each week. Around 12% of these are found to be Centrelink clients. ATO data is provided under table item 1 in table 1 in section 355-65 of Schedule 1 to the Taxation Administration Act 1953 (TAA).
Under current Federal legislation, all Australian banks are required to report cash transactions of $10,000 or more (or foreign equivalent), including details of the relevant account holders, to the regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Impose a freezing order – for example, on your bank accounts. That is, without notice the ATO can freeze and then if required strip your accounts, particularly where they believe you have alternative sources of income. This freezing order cannot be initiated by the ATO but must be granted by a court.
When using our access powers, we are authorised to enter and remain on any land, premises or place and have full and free access to books, documents, goods or other property. We can make copies of documents for our records, but cannot seize or remove your documents without your consent.
If your business income is lower than the benchmark range for your industry, you will have more chance of being targeted for an ATO audit. However, if it is lower and you have valid reasons why, then there should be nothing for you to worry about. You might need to focus on improving your business performance instead.