The Inspector-General of Taxation Ali Noroozi has claimed the ATO makes mistakes in about 5 per cent of cases, or one in 20, but Mr Jordan thinks that number is overstated. "There is no evidence for this," he said. "But I will say we could probably be better at acknowledging our real mistakes, apologising, compensating for any actual financial loss and moving on." Mr Jordan took issue with the title of the ABC Four Corners episode, "A Mongrel Bunch of Bastards", and related story in Fairfax papers, as "highly offensive and inaccurate". Loading Replay Replay video Play video Play video "Why did the ABC think it was ok to call the staff of the ATO a mongrel bunch of bastards," he asked MPs at the hearing. "I can assure you the people working at the ATO are not mongrels or bastards."

The title of the Four Corners episode came from a quote by one of the people interviewed during the media investigation. Mark Freeman, whose business had been audited by the ATO, told the investigation: "In dealing with the ATO, I've never come across such a mongrel bunch of bastards in my entire life." Mark Freeman, whose business was audited by the ATO, told the investigation: "In dealing with the ATO, I've never come across such a mongrel bunch of bastards in my entire life." Credit:Alex Ellinghausen Mr Jordan said he had not launched an official complaint when the investigation aired in early April but was still considering writing to the directors of the ABC with an official complaint. He had not so far as "I've been accused of becoming too sensitive". Mr Jordan was asked by Labor's Kristina Keneally why he refused to appear on the Four Corners program. He said it was an ATO group decision for him not to appear. "It was our decision that the head of the small business group Debbie Jenkins was the most appropriate person to do that [interview]," Mr Jordan said. Loading Replay Replay video Play video Play video

Nevertheless Mr Jordan said the agency would take steps to address the issues raised by the investigation, including trialling an independent review for the small end of town. Currently only large companies with revenue of more than $250 million are granted an independent review, and the ATO has previously said the service will not be extended to small businesses and individuals due to resourcing limitations. Labor Senator Kristina Keneally asked Tax Commissioner Chris Jordan why he refused to appear on the Four Corners program. Credit:Photo: Alex Ellinghausen "We are going to trial an independent review process for certain small business audits from July 1 - with the intention over time that businesses, regardless of size, have access and rights for a fit-for-purpose review prior to finalisation of audit," Mr Jordan told Senate Estimates. Mr Jordan said the ATO had also asked the Australian National Audit Office to review the agency's debt collection process.

This follows other investigations already underway. Revenue and Financial Services Minister Kelly O'Dwyer launched a probe into the tax office on the back of the Fairfax Media/ Four Corners investigation. Treasury is undertaking the review, with input from Mr Noroozi, and Small Business and Family Enterprise Ombudsman Kate Carnell. ABC News said in a statement that it stood by the story and that despite his criticisms Mr Jordan has announced the ANAO will review debt collection procedures, and has also announced a trial of an independent review process for certain small business audits. "No official complaint has been received from the ATO," the statement said. "If one is received it will be investigated according to our usual procedures." The media investigation also uncovered allegations by ATO whistleblower Richard Boyle that staff in the Adelaide office were "quite clearly and categorically to start issuing standard garnishees on every case" - which was not in sync with reasonable use of the debt collection tool. A standard garnishee notice requires the bank to keep sending money to the tax office whenever money is deposited in the account. The ATOs inappropriate use of garnishee notices is now also being examined in a review by Mr Noroozi's office. The investigation had also revealed that the ATO cancelled the ABNs (Australian Business Numbers) of contractors - most who were single mothers, carers or people with serious health conditions who wanted to work but needed flexible hours - and left them unable to work. This had happened before an audit had even been completed.

Mr Jordan said that objections with ABN cancellations will be examined in a separate area managed by Second Commissioner Andrew Mills. Shadow assistant treasurer Andrew Leigh said the loss of more than 4000 jobs from the tax office in recent years had made it harder than ever for the ATO to perform at the level Australians expect. "The reporting last month by the ABC and Fairfax raised genuine concerns and prompted a call from Labor - heeded by the Turnbull Government - to launch an investigation into the Australian Tax Office," Mr Leigh said. Labor's Andrew Leigh says the reporting last month by Fairfax and Four Corners "raised genuine concerns and prompted a call from Labor - heeded by the Turnbull Government - to launch an investigation into the Australian Tax Office". Credit:Andrew Meares On other matters, Mr Jordan said the tax office expects to collect around $10 billion more from large corporations in income tax for the 2017/18 financial year than in the previous year. He said while this can be attributed to economic growth and commodity price changes, the ATO has also contributed to this increase through better taxpayer compliance in this market, both voluntary and ATO-assisted.