The Inspector-General of Taxation and Taxation Ombudsman (IGTO) has announced three new review investigations that they will progress in 2022.

 

The Australian Taxation Office’s Administration and Management of Objections

The IGTO’s investigation will examine the concerns raised above and seek to identify improvements to objection processes for the benefit of taxpayers and tax practitioners. Specifically, the IGTO will examine whether:

  1. the ATO’s systems and processes for receiving, allocating, considering and finalising objections are sufficiently robust to minimise undue delay;
  2. the policies and processes for managing objections provide for an independent and impartial review of the audit decision;
  3. the current processes for managing Objections allows for sufficient engagement, interaction and exchange with taxpayers and their representatives to achieve a common understanding of, and to narrow, the issues in dispute;
  4. the Objections process is effective in minimising and resolving disputes, including through early and effective identification of cases that are suitable for alternative dispute resolution and /or settlement; and
  5. any other relevant or related matters identified by the IGTO throughout the course of the investigation, or as raised by stakeholders in submissions.

The IGTO welcomes feedback from stakeholders – including professional and industry bodies, tax practitioners and taxpayers – on any concerns they have in relation to the objection process and potential improvements that may be implemented to improve the process for the benefit of all.

Closing date for submissions: 28 March 2022

Further information can be found here.

 

The Exercise of the General Powers of Administration

The IGTO’s investigation does not propose to examine every type of decision that may be made under the GPA, but will draw from case studies in our complaints investigation service as well as stakeholder submissions to identify and investigate particular areas raised as examples of exercise of the GPA that should be investigated. In particular, the IGTO is interested to understand how broad-based GPA decisions (i.e., those affecting large groups of taxpayers) are identified and determined. As there are limited avenues for taxpayers and tax practitioners to challenge the exercise of the GPA, it is important to ensure that processes and procedures underpinning these decisions are robust and effective.

Through case studies and examples, the IGTO’s investigation will examine:

  1. the processes by which GPA matters are identified and considered, and how the ATO assures itself that its consideration of the issues accord with a purposive interpretation of the law;
  2. the regulatory and compliance impact (including the frequency and circumstances) of the use of the GPA;
  3. whether the ATO’s systems and processes to receive, consider and determine matters for the exercise of GPA are operating effectively, efficiently and with timeliness and transparency taking into account all relevant factors and stakeholder feedback;
  4. how consideration and decisions in relation to the GPA recorded and communicated, both internally and externally;
  5. whether processes in relation to the GPA are well-known and well-understood across the tax practitioner community and within the ATO; and
  6. any other relevant matters that arise during the course of the IGTO investigation or as identified by stakeholders in submissions.

The IGTO welcomes feedback from stakeholders – including professional and industry bodies, tax practitioners and taxpayers – on any concerns they have in relation to the GPA processes and potential improvements that may be implemented.

Closing date for submissions: 28 February 2022

Further information can be found here.

 

The Exercise of the Commissioner’s Remedial Power

Through the IGTO’s tax complaint investigation service, it has been observed that there appears to be a lack of clarity about how issues are raised for CRP consideration and whether the processes underlying consideration of these matters are sufficiently robust to take into account consideration of relevant factors and expert stakeholder views. This is important as decisions of the Commissioner in relation to the CRP are not subject to external merits or judicial review.

The IGTO’s investigation will examine:

  1. the processes by which (potential) CRP matters are identified, including the processes by which the ATO assures itself that it has sought to adopt a purposive interpretation of the law;
  2. the processes by which (potential) CRP matters are considered, including the application of the criteria in Division 370 of Schedule 1 to the Taxation Administration Act 1953;
  3. the regulatory and compliance impact (including the frequency and circumstances) of the use of the CRP;
  4. whether the ATO’s systems and processes to receive, consider and determine CRPs are operating effectively, efficiently and with timeliness and transparency taking into account all relevant factors and stakeholder feedback;
  5. how consideration and decisions in relation to the CRP are recorded and communicated, both internally and externally;
  6. whether processes in relation to the CRP are well-known and well-understood across the tax practitioner community and within the ATO;
  7. how the ATO engages with stakeholders as part of its CRP consideration; and
  8. any other relevant matters that arise during the course of the IGTO investigation or as identified by stakeholders in submissions.

The IGTO welcomes feedback from stakeholders – including professional and industry bodies, tax practitioners and taxpayers – on any concerns they have in relation to the CRP processes and potential improvements that may be implemented.

Closing date for submissions: 28 February 2022

Further information can be found here.

 

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