ATO Expands Test Case Litigation Scheme

by Mary Swire, Tax-News.com, Hong Kong

25 April 2005

The Australian Tax Office has broadened and simplified the process used to select taxpayers to take part in the test case litigation programme, a scheme which aims to clarify ambiguous tax laws, Tax Commissioner Michael Carmody has announced.

Under the program, the Tax Office can provide financial assistance to taxpayers involved in litigation cases considered important to the administration of the tax system.

Tax Commissioner Michael Carmody explained that the Tax Office has simplified selection criteria and broadened the categories of cases the program can fund.

“Our ongoing commitment to the test case litigation program will ensure that we have legal decisions and precedents that guide us and the community on how the law operates.

“The test case program is aimed at clarifying areas of uncertainty or contention in the way the law operates - and where this uncertainty affects a significant segment of the community.

“The community expects us to provide greater certainty around the laws we administer.

“Although we provide binding advice and information about tax administration, ultimately the courts have the final say in determining what our laws mean,” Mr Carmody stated.

The Tax Office will continue to seek community comment on this program and how to provide better law clarification.

“I am also conscious that the Inspector-General is yet to report on his review of the program, and we will take his views into account in further refining the program,” Mr Carmody noted.

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