The winning recipe in tax litigation: what every taxpayer should know

Taxpayers have been successful in a string of recent tax cases. Is it possible to distil from these cases a winning recipe for taxpayers?

Litigation is inherently unpredictable and tax litigation is no exception. Whilst there is no magical formula for winning a tax case, three ingredients hold the key for taxpayer success.

Preparing to go head to head with the Commissioner of Taxation in litigation can seem overwhelming. However, it doesn't need to be. Taxpayers who focus their attention on the three main ingredients of tax litigation - facts, evidence and advocacy - put themselves in the best position to succeed.

The first ingredient, the facts, is where most tax disputes are won or lost. At a very early stage, the taxpayer and its legal team must understand all the facts critical to the case, and the inferences to be drawn from those facts.