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.
AUTHOR
Mike Taylor
Recommended for you
As private markets maintain their position in the spotlight amid ASIC scrutiny, an adviser and an investment specialist have highlighted the growing reliance on AFSLs to guide advisers’ use of the asset class.
Vital Business Partners has thrown its support behind ASIC’s review of advice businesses’ use of offshore service providers, urging business to reassess their own set-ups.
Forbes Fava Saville has announced the appointment of a new senior financial planner, expanding its ranks to help serve clients across its Victoria offices.
Marking off its first year of operation, Perth-based advice firm Leeuwin Wealth is now looking to strengthen its position in the WA market, targeting organic growth and a strong regional presence.
