[clari.nb.trends] Australia Tests Electronic Tax Filing

newsbytes@clarinet.com (02/04/90)

SYDNEY, AUSTRALIA, 1990 JAN 29 (NB) -- The Australian
Taxation Office has on trial a new computer and
communications system it claims will reduce the personal
income tax return assessment period from 10 to two weeks.

The Electronic Transfer Service (ETS) will process about
1.5 million income tax returns at the end of this financial
year and is part of the multimillion dollar ATO
modernisation program.

However, the Australian Society of Accountants (ASA) still
has some reservations about ETS despite being in close
discussion with the ATO throughout the development of the
system. ASA director information and technology, Paul
Thewlis, said the Society would prefer to move away from the
interactive system to a store-and-forward format, allowing
for encryption or coding of key data.

"We acknowledge ETS has an enormous potential, but we
believe the current system is only a short-term solution.
The great danger is that at present, with the interactive
system, someone could gain (unauthorized) access to the 
information."

However, for the ETS to process tax returns, the returns
will have to be accompanied by a signed paper return as the
ATO has not managed to find an electronic counterpart to the
personal signature. 

The ETS was first tested in Adelaide in 1987. In 1988, about 
60 tax agents lodged 27,000 returns, and in 1989, the service 
was extended to Melbourne, with 190 tax agents lodging about 
160,000 returns.

Tax return data can be transmitted either by floppy disk or
via direct data transmission using a modem. However, it can
not be done personally but must go through an approved tax
agent. Tax agents purchase the appropriate software from a
range of suppliers, including CCH, Solution 6, C Data and
Paxus, whose products are designed on the specifications of
the ATO.

Austpac provides the data communication network whereby the
tax return data is transmitted from the tax agent to the
ATO. Tax returns forwarded via the ETS require a lot less
handling, according to a spokesman from the ATO, thus
minimizing the assessment period.

"Other advantages include immediate acknowledgement by the
ATO when it receives the return and the automated process
also provides a series of built in checks which results in
fewer errors by the agents and the ATO," the spokesman
said.

(Emma Connors and Computing Australia/19900131)


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