Already a subscriber?Tax Commissioner Rob Heferen has hit back at criticism of the ATO’s handling of small debts owed by individuals and businesses, rejecting comparisons to the illegal robo-debt scheme as unfair and offensive., in late 2023 the Tax Office unexpectedly began pursuing debts previously considered on hold or historical. The debts ranged from tiny amounts to tens of thousands of dollars and sometimes dated back many years.
About 7000 taxpayers have already paid back about $1 million, including nearly 4000 who have cleared their total debt. The ATO has no power to forgive or waive a tax debt. Outstanding amounts are routinely settled when taxpayers lodge an annual return. The Inspector-General of Taxation and Commonwealth Ombudsman issued a new set of best-practice guidelines on how government agencies should tell individuals they owe money,Greens senator Nick McKim said taxpayers who had repaid their debts based on the original letters should receive refunds.