News breaking yesterday of the tremendous success of the Australian Taxation Office’s dob-in phone line where 120 people a day were dobbing in their neighbours, ex-lovers etc for tax cheating, prompted me to think how soon before a politician’s tax foibles will be leaked before the election.

Remember how embarrassed Paul Keating was when someone in the tax office leaked that he had not lodged his tax return? Keating said he was too busy. At the time Keating was the Treasurer and, as the ATO chief, had just prosecuted a few thousand ordinary Australians for doing the same thing. Not the best advertisement for voluntary compliance!

The ATO afford politicians, industry barons, judges, magistrates and other high profile people an extra level of security. They are classified Restricted Access Taxpayers or RATS as we liked to call them. Only senior ATO officers with a RATS access can view their very personal tax information. I was one of three people in my office of 1200 staff that had the special access and it was supposed to protect these high-browed individuals from leaks.

I saw the RATS system in time become corrupt. Deputy Commissioners in branch offices saw it as their duty to allow this group of taxpayers to lodge their returns late (many had two or more years outstanding) without the threat of penalties or prosecution and to pay their tax debts late without interest. Some RATS became so accustomed to the ATO generosity that they began using the ATO as a bank. But what banks don’t charge interest?

When I asked my Deputy Commissioner why we allow these concessions to the RATS she said, “Chris, can you imagine if we hassled a judge or a magistrate over their tax returns while they sit in judgement of our tax cases? It’s the same with politicians who frame the tax laws. We just can’t do it.”

The ATO is still largely an organisation with an Irish-Catholic, labor voting background and there remains a deep hatred of the liberal party in some pockets of the brotherhood. What will it take for one of them to out one of the liberal cheats?