Alternative Tax Dispute Resolution: Perspectives from ATO Officers

Abstract

Tax disputes between taxpayers and tax administrators while common are costly to resolve, especially if they go beyond the tax administration for resolution. Attention by tax researchers and tax administrators has recently been paid to alternative dispute resolution (ADR) as an appropriate way for resolving tax disputes. The principle aim of this article is to examine ADR as a tool for resolving tax disputes and recent developments in alternative tax dispute resolution (ATDR) in Australia. The Australian Taxation Office (ATO) has adopted and implemented many initiatives that appear to improve its performance in ATDR which can in turn save time and costs for all stakeholders of the tax system, especially taxpayers. Our interview-based study suggests the commitment and direction of the ATO with respect to ATDR and raises the question whether these positive early steps can be maintained or even improved