What factors does the ATO Green Book consider in its compliance strategy?

The ATO Green Book emphasizes the importance of a compliance strategy that incorporates both voluntary compliance and risk assessments. Voluntary compliance highlights the ATO's approach of encouraging taxpayers to meet their obligations without heavy-handed enforcement actions. This proactive engagement seeks to foster a cooperative relationship between the ATO and taxpayers, making it easier for individuals and businesses to comply with tax laws.

Risk assessments are equally critical; they allow the ATO to identify areas where compliance may be lacking or where there is a higher likelihood of tax evasion or avoidance. Utilizing data and analytics, the ATO can prioritize its resources effectively, focusing on those individuals or entities that present a higher risk for non-compliance, while still supporting those who are compliant.

Together, these factors reflect a balanced and strategic approach aimed at improving overall compliance rates while minimizing disruption to compliant taxpayers.