FED: Tax office went soft on spies to catch other tax minimisers

AAP General News (Australia)
08-22-2001
FED: Tax office went soft on spies to catch other tax minimisers

Reports say the Australian Tax Office recruited a network of tax minimisation promoters
to dob in their competitors in exchange for favourable treatment from the government's
revenue collector.

The Sydney Morning Herald reports that a Senate inquiry was last night told the informants
network was allegedly used by the Tax Office to collect information about aggressive tax
shelter schemes.

The Senate inquiry received a written submission from Sydney tax adviser, CHRIS BATTEN,
whose clients were being pursued by the tax office over employee benefits schemes he devised.

His submission says certain professionals were part of that network and provided information
under a system actively promoted by the ATO where the informants were given favourable
treatment.

But first assistant tax commissioner KEVIN FITZPATRICK has told the Herald the tax
office had never used such a network.

AAP RTV gmw/klw

KEYWORD: TAX SPIES (SYDNEY)

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