Assistant Treasurer David Bradbury has today released the Inspector-General of Taxation's (Inspector-General's) Review into the Australian Taxation Office's use of early and Alternative Dispute Resolution (Report).
In this Report, the Inspector-General examined the effectiveness of the Australian Taxation Office's (ATO's) dispute resolution practices including early dispute resolution and alternative dispute resolution (ADR).
The Inspector-General found that, at a high level, the ATO is committed to early engagement with taxpayers to resolve disputes. However, he also identified some areas in which he considered the ATO could improve and strengthen its practices — reflected in the 22 recommendations in the Report.
The ATO agrees with 20 of the 21 recommendations directed to it, either fully, in principle or in part.
"The ATO has already embarked on a significant program of work to encourage the use of ADR and I encourage the ATO to continue its work in this area," said Mr Bradbury.
The Inspector-General's remaining recommendation is for the Government. The Inspector‑General suggests the Government consider amending the tax laws to give the Commissioner of Taxation the power to extend the objection period, at the taxpayer's request, prior to the expiry of this period for the purpose of engaging in ADR processes.
The Government agrees that it is important to encourage taxpayers and the ATO to engage in ADR. However, as the objection system forms a key element of the self‑assessment regime, the Government will give detailed consideration to this recommendation once it receives the Inspector‑General's report from his current review into improving the self‑assessment system.
"I would like to thank the Inspector-General for his work in undertaking this review of the ATO's ADR and EDR practices and for his efforts to identify opportunities for the ATO to enhance its existing ADR program."
The Inspector-General's report, including the ATO's response, is available on the Inspector-General's website.