By Daniel Butler and Tina Conitsiotis
Introduction
Applications are regularly made to the ATO, often at a
significant cost to taxpayers. The associated professional fees
alone can run into the thousands of dollars. Therefore, even if an
application is successful, the associated costs can significantly
reduce the net proceeds the taxpayer receives. This can lead to
unfairness.
In certain circumstances, however, there may be the ability for
taxpayers (including SMSFs) to seek compensation from the ATO. This
can provide taxpayers with the ability to recover a proportion, if
not all, of the professional fees and other costs associated with a
successful application. Note that although an application for
compensation can be a real 'value add' for clients and
might be worth considering, it will only be available in limited
circumstances.
