A senior official from the ATO has told businesses that there are multiple resolution procedures in resolving tax-related disputes. She further said that formal disputes and litigation are not the only ways they can resolve arguments with the Australian Taxation Office (ATO).
ATO second commissioner Kirsten Fish delivered a speech earlier this month. She said that there were multiple review points provided in the law and multiple ways to resolve tax problems.
If a process or decision is unclear, it is preferable to discuss the matter with a review officer. The process typically involves:
- Discussing the issue.
- Gathering information.
- Understanding the grounds and scope of the objection.
- Assessing any new information provided.
- Discussing alternative ways of resolving the dispute prior to issuing the decision.
- Issuing the decision via phone or in writing.
- Escalating the matter to the manager if the dispute is not resolved.
“If a concern or issue is with the process or how something was handled, a complaint can be made and investigated by the ATO. If it can’t be resolved, the IGTO [tax ombudsman] is a further avenue.”
Ms. Fish said that if businesses were unable to pay their tax debts, the ATO could consider payment arrangements. These include, in limited circumstances, reducing the debt.
She also said that if the business disagreed with the ATO’s findings in the case of audits, they could request an independent review by the Federal Court before their tax assessment was amended by the ATO. The court provides mediation before a hearing. Mediation is a structured dispute resolution process in which an independent person, known as the mediator, assists the parties to reach an agreement to resolve their dispute.