In June this year the ATO published its recommended approach to guide taxpayers and their advisers when making LPP claims in response to formal notices requiring production of information and documents to the Commissioner and the accompanying compendium.
Since the publication of the protocol, it has delivered information sessions about the protocol with ATO compliance staff that delivered targeted messages covering the content of the protocol as well as stakeholder feedback and concerns.
In addition, ATO staff have access to comprehensive guidance, training materials and internal networks in relation to information-gathering issues, including those involving LPP.
In dealing with LPP claims, taxpayers and their advisers can expect the following from the ATO:
- ATO staff will follow the information-gathering principles as set out in its approach to information-gathering guidance.
- ATO staff will gather information in a fair and professional manner, and for the proper application of the laws we administer. This includes giving taxpayers an adequate opportunity to claim LPP if they so choose.
- We will not draw an adverse inference because of the mere fact that a taxpayer has made an LPP claim.
- Where the protocol is relevant, ATO officers will decide whether to accept, review or challenge an LPP claim based on the facts and circumstances of each case.
ATO staff will work with taxpayers to resolve any disputes about LPP claims in a manner consistent with our information-gathering principles.
The ATO said it encourages taxpayers to obtain professional tax advice, including high-quality legal advice. In this regard, LPP serves a critical public interest by enabling the freedom of consultation between a client and their legal adviser.
It is also in the public interest that LPP is not used in such a way so as to improperly constrain the application of the statutory provisions for the provision of information and documents to the Commissioner in a manner that unduly hinders the ATO’s investigative functions.
