The Tax Office could reform its handling of disputed debts and will draw on ideas from staff as it makes changes responding to a Fairfax-Four Corners investigation raising allegations of heavy-handed tactics at the agency.
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Australian Taxation Office boss Chris Jordan, in an email co-signed by other executives, has told its 20,000 public servants that it welcomes an investigation announced by the federal government this week and that the agency wants to restore public confidence.
Mr Jordan repeated the agency's denial on Tuesday that unfair treatment of small business and individuals occurred agency-wide, but warned it could not be complacent.
"We know we are not perfect and are always looking to improve. We need to remain open and receptive to feedback and scrutiny and use those sources of intelligence to help us improve," he said.
"It is vitally important that right now we demonstrate our ongoing commitment to improve the client experience - and that we respond to perceptions and the concerns we are hearing about unfair treatment of small businesses.
"While we are confident that there are not systemic issues, we cannot be complacent, and so we are considering ideas as to how we can restore trust and confidence in us."
Mr Jordan outlined several possible areas of reform at the ATO to improve dispute resolution processes for small business, increase small business support, and improve its management of disputed debts for small businesses and the use of garnishees.
The ATO has asked staff to comment on the changes and to share ideas, although the agency would not detail any reforms when approached on Friday.
Mr Jordan said it would need to deal with any further complaints about the ATO "with expertise and empathy".
"We are concerned for the many people in the ATO who are feeling upset about the assertions about our behaviours and attitudes," he said.
"Our message to you again, loudly and clearly, is that we are proud of the work you do and the way you do it."
The Australian Services Union's Jeff Lapidos, who represents tax officials, said the ATO was generally fair and reasonable in how it worked with small business and said the upcoming Treasury investigation would vindicate ATO staff.
Sources told Fairfax and Four Corners their division had revenue targets to be met resulting in pressure and leading to shortcuts as staff looked for easy targets. The Tax Office denied it was driven by revenue.
An ATO debt collector also said he was instructed to start issuing standard garnishee notices - a debt-collecting tool letting the Tax Office order a bank to hand over money from a taxpayer’s account, without consulting the taxpayer - on every case.
The instruction followed an email sent in May to staff towards the end of a shift: “the last hour of power is upon us ... that means you still have time to issue another five garnishees ... right?”
The whistleblower, Richard Boyle, believed the decision in June to ratchet up debt collection activities was motivated by a revenue grab before the end of the financial year, however the ATO's deputy commissioner for small business, Deborah Jenkins, said it only used garnishee orders as a last resort.
On Tuesday the ATO issued a media release saying that the agency "strongly disagrees with the allegations and views put forward by Fairfax and the ABC" in an unattributed statement.
"Where we have made mistakes we will apologise and seek to rectify the position and restore the relationship with the taxpayer," the statement read.
