‘Traumatising experience’: ATO under fire for denying debt relief to at-risk taxpayer in robotax fallout

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Tax ombudsman reveals agency acknowledged person was at immediate risk of homelessness and criticises it for lack of empathy

The Australian Taxation Office denied debt relief to a taxpayer despite acknowledging the person was in serious financial hardship and at immediate risk of homelessness, according to details released by the tax ombudsman.

She said the ATO had also overlooked its discretionary and remedial powers when liaising with vulnerable people. Many of the debts far exceed the five-year retention period most taxpayers are required to keep records, generating complaints and raising questions over the fairness of the scheme. Rob Heferen took over as tax commissioner from Chris Jordan at the start of March, leaving the veteran public servant to deal with the fallout from the troubled scheme.In response to the ATO program, the offices of the tax and commonwealth ombudsmen published a guide on Tuesday advising agencies on best practice for communicating with people about debts.

“The ombudsman suggested the department apologise and help people access financial remedies where appropriate,” the guide said.

 

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