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  • Review of ATO decisions to enforce insolvency – June 2019

    1 Executive summary

    You can download this publication in Portable Document Format (PDF) – download 2019 Insolvency Review - Overarching Report June 2019This link will download a file (PDF 1749KB).

    • This report was prepared by Indigenous Professional Services (IPS) in respect of its engagement by the Australian Taxation Office (ATO) to independently review 96 insolvency cases selected randomly by the ATO on a national basis.
    • The objective of the review was to provide an independent view as to whether the ATO’s insolvency actions are in accordance with legal requirements and ATO policy, in particular the content and direction of relevant ATO Practice Statement Law Administration policies (see section 2 for more details).
    • The review involved an assessment against two specific questions that were determined by the ATO in relation to the legal recovery actions of the ATO in its management of insolvency cases:
      • Question 1: Did the ATO have a reasonable basis to believe the taxpayer would be aware we may commence formal insolvency proceedings?
      • The answer was 'yes' in all 96 case file reviews.
      • Question 2: Based on records available, did the ATO proceed with formal insolvency proceedings despite evidence of the taxpayer being viable and having the capacity to repay the tax debt within a reasonable timeframe on a risk based approach?
      • The answer was 'no' in all 96 case file reviews.
      Last modified: 20 Aug 2019QC 59948