Taxation lawyers are seeing more action in courts as a result of a more “aggressive” Australian Taxation Office (ATO). In recent months a number of high profile tax disputes have either been launched or finalised in court to the tune of hundreds of millions of dollars.

Taxation partner at Johnson Winter & Slattery Richard Gelski says the ATO is undoubtedly more aggressive than it has been for some time. “It is being more aggressive in the way in which it goes after tax payers and the way it goes after information,” he told ALB. “We are suddenly seeing an upturn in people coming to seek advice in relation to fairly aggressive approaches from the tax office in relation to their affairs.”

Arnold Bloch Leibler partner Mark Leibler AC says he has also witnessed an increase in activity in work involving the ATO, but mainly in the compliance area. “There has been an increase in activity in the compliance area because the tax office has been given more money by the government,” he told ALB. “We have seen a lot of it in the high wealth area, as a result of Project Wickenby.” He added that with regards to serious noncompliance the ATO has - from time to time - a level of aggressiveness, which even when the dispute is related to how the law is interpreted, he finds “unjustifiable”.

However, Leibler does not think the ATO is going out to deliberately penalise tax payers who got it wrong. “My view is that they have adopted a very clever carrot and stick approach. If you come forward and ask for help, they take a very sympathetic approach when it comes to penalties. However, if they catch you out them will come down on you like a tonne of bricks.”

Leibler is set to be one of two representatives from the legal fraternity at the Federal Government's upcoming tax forum in Canberra. Invited by Treasurer Wayne Swan, Liebler will join 184 representatives from across the country to discuss priorities and directions for further tax reform on October 4. Blake Dawson tax partner, Teresa Dyson, will also be in attendance.

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