The ATO on Wed 15.10.2014, released its Code of Settlement. The code sets out the ATO policy on the settlement of taxation and superannuation disputes, including disputes involving debt. The code sets out 10 items. Some key points:
- Item 6 of the code (settlement decision) provides that an ATO decision to settle or not must be a fair, effective and efficient means of resolving the matters in dispute. It also provides that a decision will be based on an informed understanding of the relevant facts and issues in dispute and any advice of a settlement advisory panel, or legal or other expert opinions relevant to the matter being considered.
- Item 8 of the code (settlement deed) provides that settlements must be finalised by the parties signing a written agreement, which sets out the terms. The usual form of the agreement is a deed of settlement. A settlement agreement must reflect the final agreed position between the parties (including any payment or future obligations). The ATO has model deeds available to use as a basis for a deed of settlement.
The ATO has also issued a practical guide for the code which provides further details and practical examples to assist ATO officers and taxpayers in considering settlement.
The ATO also withdrew Practice Statement Law Administration PS LA 2007/5 (Settlement) with effect from Wed 15.10.2014.
[LTN 199, 15/10/14]