Tax Office cleared of bias

The Australian Tax Office has a well-earned reputation for toughness.

But is it biased, towards producing extra revenue, when it issues private binding rulings?  That is, does it indulge in a little gouging, when it is asked for such rulings.
There is a perception, at the big end of town, that it is.

Australia’s big companies are the main users of these rulings.

And many are unhappy with the rulings they receive.

They suspect that the Tax Office sometimes seeks more than its fair share.

However the Inspector General of Taxation, David Vos, has scotched that one.

He has examined the matter and says that he found no evidence of “undue bias.”

But Mr Vos said the ATO could do more to prevent such beliefs spreading.

He says there has not been enough transparency in these matters in the past.

Mr Vos admits that the Tax Office has tried to overcome this problem.

“However strong perceptions of undue revenue bias remain,” the Inspector General said.

But the Tax Office genuinely strives to interpret the law to support the ‘policy intent,’” he added.

Some might conclude that this is just another case of the big bureaucrats sticking together.

But that would be unkind.

The Tax Office has said that it agrees with most of Mr Vos’s report.

It has promised that it will try to do better by:-

• increasing transparency
• clarifying its protocols and
• further reducing delays.