Computer assisted verification

What is computer assisted verification?

Computer assisted verification (CAV) describes a range of processes used by Revenue NSW to review data and information more effectively during an audit.

We use specialised staff and software to:

• assist in identifying and collecting relevant information
• reviewing and analysing the records we collect, and
• working with you to ensure the records you supply meet our needs.

The benefits of CAV

We have a dedicated team of officers who are skilled in the use of CAV software and techniques.

The benefits of using CAV during an audit compared to traditional techniques include:

• reduced time in preparing and structuring records,
• fewer requests for additional information, and
• a more efficient and complete review of the information obtained.

This results in audits that are less disruptive to your business and are completed in a shorter time.

When should CAV be used?

CAV is currently available for audits on:

• payroll tax
• mineral royalties
• insurance duty, and
• the health insurance levy.

Our CAV techniques are most useful where:

• you have a large amount of information to supply and review
• your information is not in the format we need, and
• information is difficult to extract from your computer software/system.

We commonly use CAV techniques to analyse the following types of information.

Complex and semi-structured data

Data that is difficult to extract in the format we require or is only partly structured can be processed by CAV to assist with our analysis.

Multiple sources of information

Information contained in more than one source can be consolidated. For example, where an accounting or payroll system has been changed during the financial year.

Contractor payments

Contractor payment details, such as name, ABN and amounts paid can be analysed to help determine whether payments are liable for payroll tax.

Apprentice and trainee rebates

Apprentice and trainee details, such as name, course details and wages, can be analysed to assist with calculating the apprentice and trainee payroll tax rebate.

Who decides if CAV should be used?

You can request that we use CAV.

Please tell your auditor that you would like to use CAV services before you send any requested information to us. The auditor will then discuss this with you.

We may also use CAV when we believe it will be of benefit.

Depending on what is required our CAV officers may:

• attend your business premises to observe your software, systems, and reports
• work with you to understand how your information is stored and presented
• review the records you supply to identify issues and suggest possible solutions, and
• identify options to supplement records where additional information may be needed, such as contractor or apprentice and trainee information.

CAV officers may need to work with your information technology specialist and/or accountant, especially when an on-site visit is required.

We also recommend you keep a copy of all information you provide to us so you can reference it in the future.

How Revenue NSW protects your information

We will not operate or seek direct access to your computer software or systems. You only need to provide us with the information we require in an agreed way and format.

The information you provide to us will be stored securely along with other documents and records relating to the audit.

We are bound by the Taxation Administration Act 1996 and our privacy statement to ensure the confidentiality and security of your information.

Contact your auditor

If your business is currently being audited please contact your auditor directly if you have any questions.

Your auditor’s contact details are on the Notice of Investigation letter.