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  • Recommendation 5.3

    The IGTO recommends that, when participating in ADR, both parties ensure that their representatives are authorised to discuss and settle all aspects of the dispute, including the tax technical as well as any associated tax debt, and are fully engaged and present in the ADR process.

    ATO response

    We agreed in principle with this recommendation and implementation was completed on 21 May 2013.

    As a result of this recommendation, we have improved our guidance material to relevant staff on their authority to settle:

    • litigation underway to resolve tax disputes
    • legal proceedings underway to recover debts.

    We now require, where practicable, that officers present in negotiations have the necessary authority to approve a settlement. For situations where it is not practicable to have an officer present with the necessary authority to approve the settlement, the following arrangements will ensure that an in-principle agreement regarding the settlement terms can be made between the parties:

    • the officer who attends will have obtained clear instructions on the acceptable settlement terms
    • that officer will have the ability to immediately contact, by telephone or video conference, an officer who does have the necessary authority.
      Last modified: 25 Oct 2019QC 40262