• Settlements

    Settlements are a form of alternative dispute resolution. We have a code of settlement practice and two practice statements (PS LA 2007/5 - Settlements, and PS LA 2007/6 - Guidelines for settlement of widely based tax disputes).The number of settlements continues to fall each year, declining by 51% in 2010-11. The decline to 304 this year from 621 in 2009-10 reflects the decreasing number of older schemes-related cases still in dispute.

    TABLE 4.25: Profile of settlements registered by market segment, 2010-11

    Market segment

    Settlements registered
    No.

    Pre-settlement position
    $m

    Settled position
    $m

    Variance
    $m

    Individuals

    72

    20

    13

    7

    High-wealth individuals

    7

    17

    9

    8

    Micro enterprises

    162

    190

    102

    88

    Small-to-medium enterprises

    34

    61

    29

    32

    Large business

    26

    1,721

    1,124

    597

    Non-profit organisations

    2

    8

    5

    3

    Government organisations

    1

    11

    0

    11

    TOTAL(a)

    304

    2,028

    1,281

    747

    (a) Totals may differ from the sum of components due to rounding.

    Key improvements made to the settlement process this year included:

    • application of the integrated quality framework and associated quality measures to settlement decisions and record keeping
    • improvements to the documentation supporting the process, including implementation of recommendations from the Inspector-General's review into aspects of the ATO's settlement of active compliance activities.
      Last modified: 31 Oct 2011QC 28036