The ATO has advised that it places a high priority onnresolving tax disputes early, including through reaching settlements wherenappropriate, but that it will not settle disputes at any cost. It says “thensensible use of settlements” is part of its commitment to earlier and moreneffective dispute resolution. In this regard, the ATO has advised that in 2015–2016,nit settled 1,362 cases (31{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} more than in the previous year) and that thenincreased number of settlements can be attributed entirely to settlementsnfinalised as part of Project DO IT (Disclose Offshore Income Today).
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TIP:nThe ATO’s stated policy of “placing a high priority on resolving disputesnearly, including through settlements where appropriate” is something thatnshould be kept in mind in any dispute with the Commissioner, whether large ornsmall. A settlement may provide a great opportunity to finalise a difficult ornlong-running dispute.
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