Settling tax disputes

“Significant improvements” can be made in the way the Australian Tax Office deals with disputes, according to a new report.

However Ali Noroozi, the Inspector General of Taxation, who produced the report, noted that the ATO disagrees with a major recommendation, he had made.

This proposed that the Tax Office should separate its objection and litigation activities from its audit powers in the management of its most complex disputes.

In all, the IGT made 22 recommendations.

The Tax Office accepted the others, in whole or in part.

The Assistant Treasurer, David Bradbury, who released the report today, said the ATO is already working to encourage early settlement of disputes, where possible, and promoting the use of alternative resolution procedures, when disputes do occur.

The report says its 21 other recommendations are meant, broadly, to promote three objectives.

These are to:-

• Engage taxpayers earlier, in dispute resolution.
• Enhance the skills and understanding of both ATO staff and taxpayers and
• Identifying opportunities for continuous improvement in dispute resolution procedures.

The report can be found at www.igt.gov.au