Using tax gap data to improve tax administration

The ATO Second Commissioner, Jeremy Hirschhorn, recently spoke at a conference which provides some insights into how the ATO will be closing the so-called tax gap. Going forward, the ATO will be moving away from reporting liabilities raised and cash collected to a more sophisticated measure of reporting revenue based on its action and the consequences of that action. It will also be focusing its attention on sustainably reducing the tax gap and prevent back-sliding of progress.