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Ombudsman Calls On ATO To Cease Small Business Recovery Action Where Tax Disputes Are Before AAT

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has issued a report into the ATO’s enforcement of debt recovery. In a press release, the ASBFEO called for the ATO to immediately cease debt recovery action where tax disputes were before the Administrative Appeals Tribunal (AAT).

The report contains three key conclusions and seven recommendations. The ASBFEO also reminds small business taxpayers in dispute with the ATO of its Small Business Concierge Service, which started on 1 March 2019. This service provides legal assistance for AAT appeals for a limited cost.

The ATO issued a press release outlining its response to the report stating its longstanding policy on debt recovery for cases in dispute at the AAT is to only pursue disputed debt in “exceptional circumstances” and that there are only ”very rare cases” (eg in 2017-18, it took garnishee action against small business in just four cases).

The ATO further stated that it will consider the report’s recommendations while it awaits the Australian National Audit Office’s review of how the ATO manages tax debts for small business.

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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