Taxation Law Disputes:

Disputes with the Australian Taxation Office can be one of the most frustrating and stressful experiences. Often, an individual will feel powerless dealing with a faceless body and will not be in apposition to know what to do. A claim against the ATO can of course be made, and the taxation solicitors at Navado have on many occasions advised our clients in relation to suing the ATO. 

The most common case a party may deal with is an objection to an assessment. Audits can be timely and costly procedures, but when a person is being audited by the ATO, he or she has certain rights that he or she should be fully aware of so that any options to resolve the dispute or mitigate the liability are not lost or overlooked. The assertions made by the ATO can and should be closely investigated first and foremost. The client’s own evidence should then be compared with the facts as presented by the auditor. This will comprise the merits assessment of the claim against the client. Other procedural matters however should also be investigated. For example, the Notice of Assessment will need to comply with strict legislative requirements. Improper service of the notice may be one avenue of inquiry. Another may involve inaccuracies in the Notice itself. Yet others may involve discovering untruths in the Notice and the records of the ATO. If any one of these is found to have been breached, for whatever reason, then the Notice may be deemed defective. While this may not put a stop to the process, it may buy valuable time during which the client will be able to prepare his case.

A dispute with the ATO may in fact be part of a larger legal problem spanning a variety of practice areas. Arrears in the payment of tax liabilities may be caused by a failing business or because moneys are owed to the person who cannot at present settle his own debts with the taxation office. In situations like these, legal advice should be obtained from a litigation team which is able to draw from a broad range of intellectual resources. Principles relating to debt collection, equity, trusts, priorities, creditors’ interests, security, as well as property law relating to real and personal property, shares and choses in action may all be relevant to dealing with the problem in globo. Insolvency and bankruptcy options may need to be explored as well as payment plans with debtors and the ATO itself. All these things need to be in the mind of the taxation lawyer when considering a tax law dispute. 

The dispute with the Australian Taxation Office may go to the Administrative Appeals Tribunal for review and resolution. A dispute concerning superannuation, on the other hand, may go to the Superannuation Complaints Tribunal for their attention. The Federal Circuit Court (formally known as the Federal Magistrates Court) and the Federal Court itself also have jurisdiction to hear disputes relating to taxation matters. This type of litigation can involve the principles of both civil and commercial law as taxation matters may relate to either the personal tax liabilities of individuals, or have significant connection to a business interest or commercial enterprise. Moreover, the nature of tax means that other practice areas will likely need to be investigated, such as family law, company law, directors’ duties, property, business law, to name just a few. For these reasons, it is imperative that taxation legal advice be obtained from a solicitor or lawyer who has expertise in a cross-section of litigation practice areas. 

Litigation can be very expensive, and where an individual is facing financial hardship, choosing to litigate will be a very onerous thing indeed. The financial resources to take a matter to Court may simply not be there. Be that as it may, it is important to note that tax law disputes should never be approached with a cavalier manner. These are very serious affairs and can determine the quality of life that will be enjoyed (or not enjoyed) for the foreseeable distant future. Our taxation litigation team focuses on the efficient and timely resolution of taxation matters. In so doing, all options are explored first before any matter is filed in Court. The taxation lawyers at Navado has been exposed to civil litigation as well as commercial litigation, so whether a client is an individual with personal financial problems or a business with a commercial issue that needs resolution, our taxation solicitors will be in a good position to  provide the necessary legal advice to progress sand resolve a matter. 

If you require assistance with a taxation litigation matter you may wish to contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au and make an appointment to speak to one of our solicitors. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.