Published on 01 Jun 13
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The last several years have witnessed a rise in the exercise of special powers of recovery by the Australian Taxation Office in a string of high-profile cases. This article considers the doctrinal and statutory bases for two such powers, being the grant of freezing orders pursuant to rules of court and the ATO’s entitlement to garnish moneys held by parties indebted to taxpayers under the Taxation Administration Act 1953 (Cth). Additionally, the authors examine the impact of recent case law decisions on the requirements which must be satisfied in order for the ATO to validate its use of such powers, and conclude by setting out the steps which parties might consider taking when anticipating or responding to a freezing order or garnishee notice.