Settlements - overview

What is a settlement?

Settlement involves an agreement or arrangement between parties to finalise their disputes in situations where it is in the best interests of the Commonwealth to do so.

We will only consider settling disputed tax liabilities or entitlements in appropriate circumstances. Settlement is not a normal means of resolving issues for disputed tax liabilities or entitlements.

A settlement is intended to finalise the disputed liability or entitlement for both parties. As part of settlement, both parties will be required to make compromises.

Find out more The Code of settlement practice Law Administration Practice Statement PS LA 2007/5 Settlements

Widely-based settlements

Widely-based settlements involve at least 20 taxpayers disputing the ATO view on the same or similar arrangements.

Find out more Law Administration Practice Statement PS LA 2007/6 Guidelines for settlement of widely-based tax disputes Widely-based settlement arrangements for investment schemes and employee benefit arrangements entered into after 30 June 2003 Widely-based settlement arrangements for investment schemes and employee benefit arrangements entered into before 30 June 2003