The Australian Taxation Office commissioner says the ATO sacked 12 employees in the past year for illegally accessing the records of Australians, including celebrities.
He also has admitted the ATO's reputation took a battering in the fallout from one of Australia's biggest-ever tax-fraud cases, involving one of its own officials.
When police swooped on and foiled what was allegedly one of Australia's biggest tax scams earlier this month, they seized luxury cars, watches, cash and guns.
But the biggest surprise was the son of deputy tax commissioner Michael Cranston allegedly masterminded the scam.
Adam Cranston and his alleged syndicate are accused of trying to defraud the Commonwealth of $130 million in an elaborate scam.
And Michael Cranston has been accused of illegally accessing confidential information for his son and will face court for that next month.
ATO commissioner Chris Jordan says Michael Cranston made a mistake of judgment.
"This was a father misguidedly, with a huge error of judgment, trying to find out some information for his son. Michael Cranston is not being considered for conspiracy to defraud the Commonwealth."
The ATO commissioner has appeared before a political grilling in parliament to answer questions about the alleged fraud.
Six people have been arrested, and another four ATO officials have been stood down.
Commissioner Jordan says his office started investigating Mr Cranston early last year before the Australian Federal Police (AFP) took over the investigation.
"I was not asked by the AFP to intervene. In fact, the ATO was asked to leave things as they were and to keep all existing arrangements in place, keeping Michael Cranston in the deputy-commissioner position while further information continued to be gathered."
ATO officials admit the office's reputation has suffered in the fallout from the scandal.
But it says the government does not need to start an independent review into the ATO.
Finance Minister Mathias Cormann says he agrees.
"This is very much an isolated incident, as far as they're concerned. There is no concern about any systemic issue in any way, shape or form. So the Government has full confidence in the ATO."
The Tax Office also revealed in the Estimates hearing 30 of its employees have been caught in unauthorised breaches in the past year trying to access Australians' tax data.
Commissioner Jordan says it led to the organisation sacking 12 people this year and 23 last year, but he says that is only a small fraction of the ATO workforce.
"The stupidity -- they all know, or should know, that they're monitored, right? So they're picked up. And out of 20,000 people, you get 23 who have a look at something ... There's humans, right?"
The ATO says its work continues despite the scandal.
It says it is trying to crack down on the illegal business practice of phoenixing, where a company deliberately liquidates to avoid paying creditors, taxes and wages.
The businesses then start again under a different name.
Chris Jordan says it is too easy to become a company director in Australia and to engage in phoenixing.
Labor's assistant Treasury spokesman, Andrew Leigh, says he agrees.
"Oh, it's a serious problem, but there's a small number of people who are doing it. And what they're able to do under our current laws is pop up again and again. Now that's the idea of a phoenix -- it's a bird that's reborn from its own ashes."
The Opposition is pushing for a 100-point identification check, similar to applying for a licence, before a person can become a company director.
"Well, right now, it's tougher to open a bank account than to become a company director. One expert said that it is almost so easy, you could register your dog as a company director."
Share
