What is the purpose of risk assessments discussed in the ATO Green Book?

The purpose of risk assessments discussed in the ATO Green Book is to help the Australian Taxation Office (ATO) identify and prioritize compliance activities. This process involves analyzing various data and information to spot potential areas of non-compliance or risk among taxpayers. By conducting these assessments, the ATO can direct its resources more effectively and focus on higher-risk areas where there is a greater likelihood of non-compliance. This targeted approach enhances overall tax compliance and ensures that the ATO can efficiently allocate its efforts to manage risks effectively.

The other options do not align with the primary function of risk assessments in the context of the ATO. Identifying areas suited for tax refunds, determining taxpayer eligibility for deductions, and establishing official tax deadlines do not represent the core objectives of conducting risk assessments, which centers around improving compliance activities.