19 Jun 14 Large business and high wealth individual tax disputes - IGT review begins
On 19 June 2014 the Inspector-General of Taxation (IGT) commenced a review into the ATO’s management of tax disputes involving large businesses and high wealth individuals (HWIs): IGT media release 19 June 2014.
On 2 June 2014, the Minister for Finance and Acting Assistant Treasurer referred an Inquiry into Tax Disputes to the House of Representatives Standing Committee on Tax and Revenue. The committee stated that it would examine the issues in the inquiry through a number of themes which consist of every taxpayer market segment and the related legal and governance frameworks. The IGT has been asked to review the large business and HWI themes.
ATO statistics indicate that there is a much higher level of disputation within the large business and HWI market segments than all other market segments. Moreover, disputes within the large business and HWI market segments often involve significant amounts of revenue. For example, in 2012–13, totals of $997m and $247m in revenue were varied in settlements with large businesses and HWIs respectively.
The IGT is calling for submissions, which should address the terms of reference and submission guidelines. Submissions are due by 18 July 2014.
The terms of reference and submission guidelines for the IGT's inquiry are available here.