Taxman less ready to fight in court
Australia's new Commissioner of Taxation, Chris Jordan, has signaled that the Australian Taxation Office (ATO) will likely be making less use of the courts to pursue high-profile prosecutions.
In an address to the Tax Institute annual convention, Jordan indicated the ATO would be taking a more facilitative approach based on its tax experts and compliance officers being more visible and accessible and — "not ‘faceless decision makers'".
"The right people will be involved earlier to assist with more timely advice and guidance," he said.
"Resolving disputes is a significant investment for the ATO and for taxpayers: it can be costly, time- and resource-consuming, and a potential risk to our relationships and reputation if not well handled," Jordan said.
"Media interest in disputes is regular and persistent. Every week the media covers disputes, with a particular focus on perceived high-profile taxpayers or significant litigation.
"Of course, we recognise and support the taxpayer's right to have ATO decisions independently reviewed by the courts and tribunals, but disputes occupy much court time. The timely resolution of tax disputes is an important ingredient of an effective tax system and we should be able to do more of this without the need for court," Jordan said.
The new Tax Commissioner sought to downplay the role of litigation as a part of the ATO's armoury, saying that while it was an important part of a functioning system, it comprised "a very small part of the ATO's business".
"For example, of the 15.9 million tax returns lodged last financial year only 179 cases proceeded to a hearing in the Administrative Appeals Tribunal or the courts.
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