How we conduct and manage litigation
Litigation is the process of taking legal action.
We strive to finalise all disputes in a fair and timely manner consistent with the law, using dispute resolution techniques to minimise litigation and related costs. Our officers have the same professional and ethical obligations as any other legal practitioner.
We will operate as the solicitor on the record in certain cases. A solicitor on the record, in relation to any party to proceedings, means the solicitor who is, for the time being, named as the party’s legal representative in the documentation for the proceedings.
Find out more about our obligations as a model litigant, including how to lodge a complaint.
External options
You have the right under tax law to go to the Administrative Review Tribunal (ART) or Federal Court to challenge some of our decisions.
In most cases, you must lodge an objection and be dissatisfied with the outcome before seeking an external review.
The objection decision, and the reasons for that decision, will usually be provided to you in writing. If you didn't receive a written decision or you're not satisfied with the reasons, you should contact your case officer.
At the ART or Federal court, you will:
- be expected to prove your claims with evidence in a tribunal or court review
- need to prove the decision should not have been made or should have been made differently
- need to show what you believe the correct assessment should be.
The ART is an independent body that can conduct a merits review of certain decisions we make. For example, they may confirm our decision, vary it, set it aside, or make a new decision. You can find out more, including how to apply for a review, at www.art.gov.auExternal Link
When you apply for a review, you:
- are limited to the grounds stated in the taxation objection to which the decision relates, unless the ART orders otherwise
- will be expected to prove your claims with evidence. If the decision you're seeking a review on is
- an assessment, you'll need to prove that the assessment is excessive or incorrect, and what it should have been
- for anything else, you'll need to prove that the decision shouldn't have been made or should've been made differently.
There are certain other decisions made by us that may be reviewed by the ART that aren't categorised as objection decisions. In these circumstances, different time limits for review will apply – the notice of decision should provide more information on your rights of review.
If you have any questions about these procedures and requirements, contact us or the ARTExternal Link. You can also seek professional advice.
Before you go to the ART, you can also reach out to the Australian Small Business and Family Enterprise Ombudsman’s Tax Concierge ServiceExternal Link to help you navigate the ART process.
The ART replaced the Administrative Appeals Tribunal (AAT) from 14 October 2024. All cases that were before the AAT automatically transferred to the ART. You don't need to do anything, and it doesn't change the timeframe to seek an external review. Find out more about the transitionExternal Link.
Small business litigation funding
If we engage external legal representation, we’ll cover reasonable costs for you to engage an equivalent level of legal representation to act on your behalf in the ART if:
- you're self-represented
- your matter relates to a small business tax assessment.
This is called small business litigation funding.
The Australian Small Business and Family Enterprise Ombudsman’s Tax Concierge ServiceExternal Link can also provide assistance.
Test case litigation program
If your case may help clarify the law and provide legal precedent on a matter affecting a significant section of the public, our test case litigation program may provide financial assistance.
Inspector-General of Taxation and Taxation Ombudsman (IGTO)
If you have a complaint about our administration that you've been unable to resolve with us, you can approach the Inspector-General of Taxation and Taxation Ombudsman (IGTO). This is additional to your rights to have our actions reviewed by the courts.
The IGTO provides independent assurance that taxation administration laws are operating effectively and consistently.