Question: (4-a): Australian Taxation Office is developing a new computer system for processing individual and corporate income-tax returns. The new system features direct data Input and
(4-a): Australian Taxation Office is developing a new computer system for processing individual and corporate income-tax returns. The new system features direct data Input and inquiry capabilities. Identification of taxpayers is provided by using the Medicare number for individuals and Australian Business Number (ABN) for corporations. The new system should be fully implemented in time for the next tax season The new system will serve three primary 1. Tax return data will either be automatically input directly into the system if the taxpayer files electronically or by a clerk at central headquarters scanning a paper return received in the mat 2. The returns will be processed using the main computer facilities at central headquarters Processing will include four steps: a. Verifying mathematical accuracy b. Auditing the reasonableness of deductions, tax due, and so on, through the use of edit routines, which also include a comparison of current and prior years' data. c. Identifying returns that should be considered for audit by department revenue agents d. Issuing refund checks to taxpayers 3. Inquiry services. A taxpayer will be allowed to determine the status of his or her return or get information from the last three years' returns by calling or visiting one of the department's regional offices, or by accessing the department's web site and entering their Medicare number The state commissioner of taxation and the state attorney general are concerned about protecting the privacy of personal information submitted by taxpayers. They want to have potential problems identified before the system is fully developed and implemented so that the proper controls can be incorporated into the new system. Required Describe the potential privacy problems that could arise in each of the following three areas of processing, and recommend the corrective action(s) to solve each problem identified: a. Data input b. Processing of returns c. Data inquiry
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