The ATO on Thur 1.8.2013, released Practice Statement Law Administration PS LA 2013/3 to provide instructions to ATO personnel on what policies and guidelines must be followed when attempting to resolve or limit disputes by alternative dispute resolution (ADR). It said ADR is a term which widely refers to processes other than judicial or tribunal determinations, and involves an impartial individual (an ADR Practitioner) to resolve the issue. However, the ATO said the ADR process could also be initiated by the courts or tribunals.
According to the ATO, the PS LA applies in respect of taxation and super disputes, however, it said the principles set out will apply to other disputes to which it is a party. It said while not all disputes are suitable for ADR, in general the process may be appropriate when there are issues to be negotiated, the ATO or the taxpayer “has something to give”, the dispute is capable of being settled within existing policies and practices, and early resolution is preferable to judicial determination.
Where the taxpayer’s expectations in relation to ADR are not met, the ATO says they should first attempt to resolve the matter with the tax officer involved, and if they are still unsatisfied the tax officer’s manager should be approached. In instances where the taxpayer remains unsatisfied with the response, the ATO noted that a compliant may be lodged using an online form on its website. Further, it said the taxpayer’s review and appeal rights will be unaffected by participating in ADR, subject to the terms of any settlement reached.
[LTN 147, 1/8/13]