The Australian Taxation Commissioner, Michael D’Ascenzo, has revealed that sometimes the Australian Taxation Office (ATO) takes the view that compromise is the best outcome in settling tax disputes.
In a speech delivered in Canberra this week, D’Ascenzo revealed that in 2007-08, the ATO entered into 1,201 settlements with the result that a perceived tax liability of $2,147 million was settled for $1,327 billion.
He said the settlements clarified the liabilities of the taxpayers and facilitated the collection of outstanding amounts that might otherwise have been in dispute.
D’Ascenzo said in an effort to minimise costs and reach finality sooner, the ATO was seeking to streamline its dispute resolution process by moving where possible to have dispute resolution closer to the original decision made by the ATO.
He said this was another example of the concept that prevention was better than cure.
