Charter and purpose
The Chair welcomed new members and led a discussion about the purpose of the group. The group is focussed on issues relating to dispute resolution and would not generally cover specific tax topics, even if there are some disputes on those issues. Topics generally covered by the Dispute Resolution Working Group (DRWG) can span the dispute resolution spectrum and members are encouraged to be active participants in shaping the agenda for each meeting.
Disputes landscape and previous items presented
The ATO is very busy across the disputes landscape, particularly noting several objections on-hand in the middle market, and small business and individual areas. This is resulting in some delays and the ATO is working on process improvements to bring objections stock-on-hand back to optimum levels.
Some matters of note in the dispute's environment included:
- the Inspector General of Taxation Ombudsman’s review into the management of objections
- the recently published updates to the practice statement on extensions of time to object
- a forthcoming communications protocol practice statement.
Small business funding changes in the AAT
The small business litigation funding program, the ‘Program’ was previously funded by the Federal Government supported by Appropriation Bill No. 3 (2018–19). This budget measure concluded on 30 June 2023. The ATO’s general budget will fund the Program from 1 July 2023 and considers this Program contributes to a fair and effective tax system and supports trust and confidence in both the tax system and our administration.
As such, the ATO is recommending that the current small business litigation funding policies be better aligned with the policies and practices observed in the test case litigation program, to better protect the integrity of the program and give greater certainty to small businesses.
Small Business alternative dispute resolution
The ATO has a focus on preventing audit getting to dispute, providing a timelier and more cost-effective experience for taxpayers and their intermediaries. There are a few channels for dispute resolution under the ATO charter and the ATO encourages raising disputes with the audit team in the first instance. Taxpayers and intermediaries always have the right to ask for another officer or manager.
The ATO offers a Small Business Independent Review service to eligible small businesses who disagree with our audit position, to help them achieve an early and fair resolution. Small business with a turnover of less than $10 million may be eligible, and there are certain disputes which are excluded from the service including superannuation, fringe benefits tax, fraud and evasion findings and interest.
Attendees
Organisation |
Attendee |
|---|---|
ATO |
Andrew Orme, Objections and Review (Chair) |
ATO |
Fiona Knight, Office of the Chief Tax Counsel |
ATO |
Michael Morton, Individuals and Intermediaries |
ATO |
Rebecca Saint, Public Groups |
Administrative Appeals Tribunal |
Michael Abood |
Australian Small Business and Family Enterprise Ombudsman |
Craig Latham |
Chartered Accountants Australian and New Zealand |
Ashley King |
Chartered Accountants Australia and New Zealand |
Karen Liew |
Corporate Tax Association |
Simon Staples |
CPA Australia |
Bill Leung |
Law Council of Australia |
Angelina Lagana |
Law Council of Australia |
Hugh Paynter |
The Tax Institute |
Michael Wells |
Guest Attendees
Organisation |
Attendee |
|---|---|
ATO |
Andrea Jennings, Office of the Chief Tax Counsel |
ATO |
Benjamin Murphy, Superannuation and Employer Obligations |
ATO |
Emma Tobias, Small Business |
ATO |
Leigh McCarthy, Objections and Review |
ATO |
Robert Kwan, Small Business |
Apologies
Organisation |
Member |
|---|---|
The Tax Institute |
Chris Kinsella |