ATO takes 'hard line'

The Australian Taxation Office (ATO) has been accused of taking a ‘hard line approach’ to compensating tax practitioners for the cost and frustration involved by a problematic computer systems upgrade last year.

The Institute of Public Accountants (IPA) has strongly backed the findings of the Inspector-General of taxation’s review of the so-called ‘Change Program’, which it said had vindicated the call for compensation.

It said the Inspector-General’s report had confirmed what later became evident – that at the time of the deployment of the new system “it was not in an ideal state in terms of the number of existing defects or defects likely to arise”.

Prosecuting the IPA’s case, its chief executive, Andrew Conway (pictured) said the organisation was disappointed that the ATO had disagreed with the Inspector-General’s recommendation for compensation.

“Our members have every right to be outraged for not being compensated for the economic loss they have suffered,” he said.

Conway said members of the IPA had incurred serious damage to their reputations as well as lost time in dealing with the ATO and their clients while attempting to resolve problems during the implementation of the Change Program.

“Some of our members even had to resort to obtaining finance to maintain cash flows during this period due to refund delays,” he said.