What is an independent review?
When your audit case officer sends you (or your representative) our final audit position, it may include a written offer to have an independent review. If you disagree with our audit position, you can ask to take up this offer.
In an independent review, a tax officer with no previous involvement in your matter will review the supporting documents, facts and technical merits of your position and the audit position. This is done before we issue any assessment or amended assessment.
We offer an independent review if there is demonstrated value for you and us to provide a streamlined and timely pre-assessment review of the audit position.
You can still use other dispute resolution options after an independent review. For example, you can still lodge an objection if you disagree with the outcome of the audit after the independent review is complete.
To find out how an independent review is conducted, see The independent review process.
How to request an independent review
If you're eligible for an independent review, you will receive an offer from us. Request a review by emailing us within 14 days of the date of offer.
In your request you'll need to specify each area of your disagreement with our audit position.
We’ll consider the grounds for your disagreement and confirm that your case qualifies for an independent review. If we decline your request, we’ll tell you the reasons why and your audit will be finalised according to our audit position.
Your audit case officer may ask you to complete a consent form to extend the amendment period. This will allow the reviewer to complete the review before the period of review for the relevant assessment ends.
Eligibility for an independent review
You’ll be eligible for a large market independent review if you:
- are a taxpayer with an income or turnover of $250 million or more on lodged tax returns
- are not excluded for other reasons – see Situations where a review is not available.
We offer independent review for most large market disputes. We will only offer it for transfer pricing matters if certain conditions are met, and it’ll most likely be restricted in scope. Contact us so we can look at other ways to resolve transfer pricing issues.
Situations where a review is not available
You are not eligible for an independent review if:
- we receive your request for a review more than 14 days (or the otherwise agreed period) after we issue the final audit position
- your request for review doesn’t clearly specify each area of disagreement
- your review would require more than 60 business days to consider due to the issues and information provided (however, we may offer an independent review on selected issues)
- the 60 business days allowed for an independent review would cause the audit end date to go beyond the period of review, and you don’t agree to extend the relevant period of review.
Your case will not be eligible if:
- it has or will be considered by the General Anti-Avoidance Rules Panel, regardless of the extent of consideration of the substantive provisions
- the specific areas of your disagreement were already subject to an independent evaluative resolution process, such as an early neutral evaluation or case appraisal
- you have very similar issues that are currently being considered in another independent review or objection (this does not exclude independent review where there are material differences in the facts or law)
- it relates to transfer pricing issues, with the exception of cases where the audit position includes legal questions clearly capable of determining the case and
- recommendations can be made as to which party has the better view and
- recommendations can be made without considering the underlying economic analysis
- recommendations can only be made by deciding between matters of conflicting expert opinion
- it relates to the application of shortfall penalties (as the penalty paper is not issued until after the review is completed)
- it is about the process or procedure, and doesn’t affect who has the better view of the ultimate tax issue.
When we may not offer a review
We have the discretion to not offer an independent review. For example, we may not offer an independent review if:
- we have announced that tackling the main issues in dispute is among our highest priorities (which might be the case if a Taxpayer Alert is clearly relevant)
- the case has significant systemic impacts
- you haven’t cooperated effectively with the audit, for example, you haven’t provided requested material information
- your case has already been escalated for in-depth scrutiny and review by independent senior officers.