PM pledges to simplify tax disputes for small businesses

Prime Minister Scott Morrison announced the initiative late on Wednesday, promising to make it easier and cheaper for small businesses to settle their tax disputes with ATO.

The government is establishing a concierge service within the ABSFEO to provide small business owners with support and advice about the Administrative Appeals Tribunal (AAT) process before making an application.

“A dedicated Small Business Taxation Division within the AAT - independent of the ATO - will case manage appeals to ensure businesses get a fair hearing,” Kate Carnell said.

“We feel the proposed $500 fee to lodge an appeal is financially manageable for a small business and the time frame of 28 days for a decision to be made following a hearing is reasonable.”

There are 3.8 million small business taxpayers, including sole traders, in the tax system according to the ATO’s annual report.

“This new proposal is critical for small businesses as more often than not, their houses are on the line,” Ms Carnell noted.

“The financial impacts of a dispute through the courts over a long period of time is devastating and it doesn’t take long for a small business to run out of money.”

She explained that her assistance team is well-placed to manage small and family business tax disputes, having already triaged hundreds of similar cases for almost three years.

“Ours and AAT’s specialised support will assist small businesses resolve ATO disputes in a timely and cost-effective manner. It will also complement the ATO’s Independent Review facility for small businesses with tax problems, which provides informal discussion of issues in a way that avoids formal legal routes,” Ms Carnell concluded.