ADR in Tax Disputes
Debbie Hastings
First Assistant Commissioner
Review and Dispute Resolution
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/ Title
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ADR as part of dispute management
ATO objective
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To resolve disputes as early as possible while treating
taxpayers fairly and consistently
Corporate Plan 2014-18
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Reduce time to resolve disputes
Reduce the number of disputes
Lower costs for taxpayers and the ATO
Make it easier to interact with the ATO
Litigation remains an important part of our dispute
management strategy
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Review and Dispute Resolution
• Independent Review of large market audits
• Objections for companies and privately held
groups with an annual turnover of $100m+
• Part IVC and debt litigation
• Champion role for ADR across the ATO
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Alternative Dispute Resolution
• ADR is a process, other than judicial or tribunal
determination, in which an impartial person
assists the parties in dispute to resolve or
narrow the issues between them.
• Most common form of ADR in tax disputes:
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Advisory – neutral evaluation, case appraisal
Facilitative - facilitation, mediation
• ATO Plain English Guide to ADR
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When is ADR appropriate or suitable?
• Dependent on the nature and circumstances of
the dispute
• At different points through out the dispute
• Increasingly being used at audit and objection
• ADR is still available after an appeal has been
lodged in the Federal Court or AAT.
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The use of ADR in tax disputes
• Large market taxpayer disputes
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Advisory ADR
Blended approaches
There is no “one size fits all”
Resolve or narrow issues in dispute for litigation
• Small business and individual disputes
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Facilitative ADR
In-house facilitation now available
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What you can expect from the ATO in an
ADR process
• PSLA 2013/3
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The ATO will
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be prepared,
participate fully and in good faith
ensure all relevant documents are provided to the
taxpayer prior to the ADR
listen and remain courteous
ensure the decision maker is present
The ATO expects taxpayers and their representatives to
approach the ADR in the same way.
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Our ongoing commitment to ADR and
dispute resolution
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Report by the Australian Centre for Justice Innovation
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covering feedback of all ADR during 2013-14
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participants generally positive about the process
and outcomes.
Factors that make ADR more effective and successful
 Preparation is very important
 Both parties need to approach ADR with a
positive attitude
 Decision maker should be present
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Our ongoing commitment to ADR and
dispute resolution
• Continue to seek feedback from key
stakeholders
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Dispute Resolution Working Group
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Legal Practitioner Roundtable
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Membership includes professional associations, Law
Council of Australia, AAT, Federal Court, AGD and
ADR academics
All state and Territory Law Societies and Bar
Associations, Law Council of Australia, Law Institute of
Victoria and panel firms.
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• Any questions?
© Debbie Hastings, First Assistant Commissioner ATO
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