Ombudsman releases report on the ATO’s administration of garnishee action
Acting Commonwealth and Taxation Ombudsman, Dr Vivienne Thom, today released a report on the Australian Taxation Office’s administration of garnishee action.
‘We looked at the ATO’s administration of garnishee action because it involves the use of significant ATO powers to seize funds from third parties to discharge taxpayer debts,’ Dr Thom said.
‘Due to the potentially adverse impact of garnishee action on taxpayers, we also considered what checks and balances existed to protect taxpayers’ interests. A further consideration was our interest in taxpayers’ understanding of garnishee action and how it can be used by the ATO.’
The Ombudsman’s review of complaints received and the ATO’s administrative systems governing the use of garnishee action did not disclose any major concerns or systemic issues. However, the review did highlight some areas for potential improvement, particularly those relating to taxpayer awareness and understanding, and recording and providing reasons for a decision.
In responding to the Ombudsman’s report, the ATO confirmed its commitment to working with taxpayers and tax practitioners to explore how to better communicate the consequences of ignoring tax debts, including the possibility of garnishee action.
The ATO welcomed the Ombudsman’s suggestions and will consider these as part of its ongoing commitment to listen and respond to community feedback. The ATO has arranged to review its administration of garnishee action including communication activities.
The report is available at www.ombudsman.gov.au.
Date of release: 17 April 2007