The Tax Office’s Code of Settlement Practice (Code) and the processes which support it have been reviewed and updated.
The Code provides guidance for Tax Office staff on:
the settlement of taxation disputes in relation to all taxpayers
where settlement could be considered, and
outlines the processes which should be followed.
The Code balances the need for accountability and transparency of decision making with the requirements under the law to maintain the privacy of taxpayers’ information. It is designed to provide assurance about the appropriateness of settlement decisions.
The revised Code takes effect from 21 February 2007.
Settling disputed matters is consistent with good management of the tax system, overall fairness and best use of Tax Office and other community resources. This has become known as ‘the good management rule’, which has been endorsed by the courts.
Settlement guidelines were initially developed in consultation with taxpayer, professional and industry groups. They were first introduced in February 1991, then revised and retitled the Code of Settlement Practice in September 1999. A further revision was issued in January 2001.
During 2006 we reviewed our practices and procedures for settlements including a review of the Code. We consulted widely across the Tax Office and then sought feedback from the professional bodies and external scrutineers on a draft revised Code and paper outlining our settlement processes.
The revised Code has now been finalised. Two practice statements have also been issued in conjunction with the Code:
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