*Complaints about tax disputes: Ombudsman appeared at Parliamentary inquiry [13]

The Commonwealth Ombudsman, Mr Colin Neave, appeared before the Federal Parliamentary Standing Committee on Tax and Revenue on Wed 24.9.2014 to discuss complaints made to his office on tax disputes. The Ombudsman has identified the following areas of concern:

1. 1.the ATO’s engagement with taxpayers prior to litigation;
2. 2.perceptions of a power imbalance between the ATO and taxpayers;
3. 3.unnecessary or unclear terms of settlement;
4. 4.poor communication by the ATO during disputes;
5. 5.ATO delays.

The Ombudsman has noted that the ATO has made some improvements, such as no longer requiring taxpayers to withdraw their complaint with the Ombudsman as a condition of settlement. The ATO is also more likely now to use alternative dispute resolution.

Prior to the Ombudsman appearing, the Committee said it will take evidence from a private individual about his experience of disputes with the ATO, including the garnisheeing of his bank accounts.

[LTN 185, 24/9/14]