Question

Discuss the ATO’s ‘Test Case Litigation Program’

1) Purpose / Background  

2) Why ATO introduced this program

3) What are the benefits

Answer 1

SOLUTION :

Australian Taxation Office (ATO)'s 'Test Case Litigation Program':

1) PURPOSE / BACKGROUND :

The purpose behind Test Case Litigation Program is to provide financial assistance to taxpayers to help them to meet the litigation costs for ATO law related cases.

2) WHY ATO INTRODUCED THIS PROGRAM:

ATO introduced this program to improve the administration of justice in taxation laws with the following intentions:

- to resolve issues where there is uncertainty or contention about how the law operates,

- to be in the public intestes to be litigated,

- significant commercial implications for an Industry

3) WHAT ARE THE BENEFITS:

The followings are the benefits of Test Case Litigation Program:

- Natural advantage under the tax administration system,

- Different perspectives of the OSR and the taxpayers to litigation,

- the limited private capacity of an Individual taxpayer will be balanced,

- the uncertainty and the increasing complexity in taxation laws which required taxpayers to incur cost to obtain professional advice will be resolved