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Australian Tax Office Issues Practice Statement on Dispute Settlements — Orbitax Tax News & Alerts

On 15 January 2015, the Australian Tax Office (ATO) issued Practice Statement Law Administration: Code of settlement. The practice statement sets out the ATO’s policy on the settlement of taxation and superannuation disputes, including disputes involving debt.  The practice statement covers:

  • What is a settlement
  • Settlement negotiations
  • Settlement considerations
  • Settlement decision
  • Settlement deed
  • Use of a settlement agreement in future years

The practice statement also notes that If taxpayers reasonably relied on the practice statement in good faith, they will be protected from interest and penalties if a statement turns out to be incorrect and taxpayers underpay their tax as a result. However, they will still have to pay the correct amount of tax provided the time limits under the law allow it.

Click the following links for more information:

Practice Statement Law Administration: Code of settlement

Practical guide to the ATO Code of settlement