Compensation for administrative bungles

Compensation for administrative bungles

No organisation is perfect, including the ATO. If you have suffered a loss because of an administrative bungle, you might be entitled to compensation under the Compensation for Detriment Caused by Defective Administration (CDDA) Scheme.

Following a review of the ATO’s implementation of the CDDA Scheme, small business should see some improvements, including:

  • claims being investigated by ATO officers who are separate to the officers involved in the tax matters that led to the claim;
  • an independent reviewer for the most complex or sensitive cases;
  • the adoption of a lesser standard of proof; and
  • ATO staff being required to take into account a small business’ financial and personal capacity to respond to review, audit or other compliance processes.

Ref: TaxWise Business February 2020

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