The ATO has advised that it is conducting an alternative dispute resolution (ADR) pilot using in-house facilitation to resolve smaller and less complex indirect tax objections including substantiation and penalties. For the pilot, the ATO says the ADR will assist taxpayers resolve issues with the assistance of an impartial and independent in-house facilitator bound by a code of conduct.
The ATO says the pilot will run in 2 stages between November 2012 to April 2013. Stage 1, which commenced in November 2012, is by ATO invitation only, and is limited to approximated 10 indirect tax objection cases involving GST, excise, fuel tax credits, luxury car tax, and WET issues. The ATO says taxpayers may be invited to participate in stage 1 if the objection has one or more of the following features: (i) factual disputes (excludes issues on legal interpretation); (ii) valuation issues (margin schemes or sales to associates); (iii) apportionment issues; or (iv) penalty issues.
The ATO says participation in the pilot is voluntary, and those taxpayers chosen will be provided with more information on the ADR facilitation process. Further, it says taxpayers’ rights of review and appeal will be unaffected by the pilot.
[FJM Note: beware of lack of independence and lack of relevant skills]
[LTN 221, 14/11]