ARTICLE · 08 SEPTEMBER 2017

Settlement agreements with the ATO - a cautionary tale

McCullough Robertson

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Taxpayers should be careful when drafting settlement deeds to ensure that the parties' intention is properly reflected.

AustraliaTax

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WHO SHOULD READ THIS

Taxpayers and their advisors who are currently in dispute, or negotiating a settlement with, the ATO.

THINGS YOU NEED TO KNOW

Taxpayers and their advisors should be careful in drafting settlement deeds to ensure that the parties' intention in settlement discussions is properly reflected in the deed.
Taxpayers should also ensure that they are aware of the circumstances in which the Commissioner may exercise his right to security under the terms of the settlement deed.

The recent decision of the Full Federal Court in Bazzo v Commissioner of Taxation [2017] FCAFC 139 (Bazzo) demonstrates that caution must be exercised by taxpayers and their advisors when negotiating a settlement deed with the Australian Taxation Office (ATO).

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