If you or your client are not satisfied with an ATO private ruling or decision, there are a number of ways you can dispute it.

ATO INTERNAL DISPUTES POLICY

The ATO’s in-house facilitation services deal with less complex disputes. This is essentially a mediation process where an impartial ATO facilitator meets with you and the ATO case officers to identify the issues and attempt to resolve the issue.

OBJECTION TO ASSESSMENTS

You have the right to object to tax assessments issued by the ATO if you object within the specified time limits (usually from 60 days to four years).

EXTERNAL REVIEW OF ATO DECISIONS

Appeals from ATO decisions can also be made to the Administrative Appeals Tribunal (AAT) or the Federal Court of Australia.

• AAT PROCEDURES

Normally, the ATO letter advising you of the decision would identify whether the AAT has jurisdiction to review your decision. If you are not a small business entity, your review will be conducted in the Taxation and Commercial Division.

You initiate the process by lodging an application, which can be found on the AAT’s website (aat.gov.au). Your case will be allocated to a managing member. During the application and hearing, the AAT will continue to work with the parties to encourage the exploration of an early resolution.

If you are a small business entity (aggregate turnover of less than $10 million), the AAT has a Small Business Taxation Division that can handle your matter. This division uses an early case assessment process to identify the most effective and efficient way to progress your application.

• FEDERAL COURT OF AUSTRALIA

Proceedings in the Federal Court of Australia begin with an application being filed. It’s your responsibility to serve a sealed copy of the application on the ATO within five days of filing.

The application should include a copy of the ATO’s objection decision (or a copy of your objection) and details about the appeal to help the Court to better understand the nature of the case. It is recommended that the Tax File Number on the documents be redacted.

Costs

One important point to note is that legal costs in the Federal Court are much higher because it involves a very complex court process requiring significantly more work and preparation.

If you were to lose in the Federal Court, you may be responsible not only for your own legal costs, but also costs awarded by the Court to cover part of the ATO’s legal costs.

The information contained in this article is extracted from the ATO, AAT and the Federal Court of Australia websites.