A taxpayer who is dissatisfied with an assessment or

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A taxpayer who is dissatisfied with an assessment or other taxation decision has the right to object to the assessment or decision ( ¶28-010 ). Subsequent review by the Administrative Appeals Tribunal (AAT: ¶28- 090 ) or Federal Court ( ¶28-110 ) may be available. Decisions that do not relate to the assessment or calculation of tax may be subject to judicial review ( ¶28-180 ). Taxpayers have a right to be paid compensation in certain circumstances where the ATO’s actions have caused them loss. The two broad bases on which the ATO assesses a compensation claim are compensation for legal liability (eg negligence) and compensation for detriment caused by defective administration. Information about applying for compensation is available on the ATO website ( ). Applicants must complete the approved form “Applying for compensation” (NAT 11669). If compensation is not payable, a taxpayer can apply to the Department of Finance and Administration for an act of grace payment . A taxpayer may complain to the Inspector-General if they are dissatisfied with the administrative action taken by the ATO or the Tax Practitioners Board. Complaints may be in regard to: debt recovery actions; income tax assessment and instalment activity issues; decisions to bankrupt; conduct of audits; provision of advice; methods of handling inquiries; remission of penalties; handling of correspondence; delays in
ACCT2231: Taxation decision making; handling of private and public rulings; superannuation guarantee audits; operation of the PAYG instalment system; collection of FBT or PAYG withholding; and ATO assessments of compensation claims. A taxpayer who thinks that the ATO has breached the Privacy Act 1988 and/or TAA Div 355 ( ¶1-220 ) in dealing with the taxpayer’s personal information may also complain to the Privacy Commissioner. ATO advice The ATO provides various forms of advice to the general public and to particular entities in an effort to disseminate the Commissioner’s views on, and interpretation of, the tax laws ( ¶24-500 ). Depending on the form of ATO advice, various levels of protection against primary liability, penalties and interest are afforded to those relying on the advice. The ATO also offers taxpayers the opportunity to enter into its Early Engagement Process , in order to seek preliminary advice in regard to the tax issues of complex transactions under consideration or already implemented. The income Tax Process and key concepts [¶1-230] The income tax process The basic steps in the tax process are as follows. (1) Towards the end of each financial year (30 June), the Commissioner issues a legislative instrument calling for the lodgment of annual income tax returns ( ¶24-010 ). Theoretically, every taxpayer deriving income is obliged to lodge a return although, in practice, certain low income earners are not required to do so.

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