Eight-year fight nears end: Gary Kurzer.
Photo: Brendon Thorne
When Gary Kurzer’s day in court against the Australian Tax
Office finally arrives in September, he believes he will be fighting for
thousands of ordinary Australian taxpayers.
The Sydney man says he lost his business, his home, his
marriage and his health trying to fight the legal might of the Tax
Office after a botched tax bill based on ''incorrect methodologies''
sparked a eight-year legal dispute.
The struggle that began in 2006 with a bill for $200,000 in
tax and penalties – later corrected to just $8000 – will culminate in a
Federal Court showdown in Sydney in September, when the former architect
will try to win $5.8 million in damages for the Tax Office’s alleged
negligence.
The Tax Office, in its legal defence, says Mr Kurzer’s case
is weak and that he will be unable to prove the Tax Office owed him a
duty of care, but declined on Wednesday to publicly to discuss the case.
The Tax Office is coming under increased scrutiny for its conduct of disputes and imposition of penalties.
A report published last week by the Inspector-General of
Taxation found that up to 35 per cent of the $4.25 billion of tax
penalties in the past three years were unfairly imposed and were later
reduced.
Top Tax Office officials fronted a Parliamentary committee in
Canberra on Wednesday afternoon to defend their agency’s record on
disputes with taxpayers.
Mr Kurzer, who has rejected a Tax Office offer to settle the
case, said that his experience was just one of thousands of bad Tax
Office decisions that had destroyed lives.
The former architect’s troubles began in 2006 when he and his
ex-partner sold two seaside units in Terrigal on the NSW central coast
and the Tax Office decided that he was liable for a $200,000 GST bill on
the proceeds of the sale.
It took five years and action in the Administrative Appeals
Tribunal and other forums for the Tax Office to concede its mistake,
that Mr Kurzer’s liability should have been just $8554 and his tax
liability had been assessed using ''incorrect methodologies''.
But according to his Federal Court case, years of conflict,
appeals, claims and counter-claims had taken an emotional, physical and
financial toll on Mr Kurzer, who says his emotional problem are so bad
that he can no longer work.
He is fighting his case without a lawyer against the might of
law firm Minter Ellison hired by the Tax Office, and claiming damages
of $5.8 million for economic harm as well as emotional distress, pain
and suffering.
Mr Kurzer says a court victory would inspire thousands of Australians battling what they say are unfair Tax Office decisions.
''The Tax Office is allowed to collect what it is entitled to
collect,'' he said. ''It is not entitled to harass, to bully, to lie,
to cheat, to force people into these situations when they don’t owe the
money.
''There is collateral damage to families, to people, to businesses. People are going on welfare, their kids are suffering.''
Mark Chapman of lobby group Taxpayers Australia says that
most taxpayers who fall victim to mistakes by the Tax Office do not have
the money to fight the taxation officials.
''Kurzer is by no means unique,'' Mr Chapman said. ''At
Taxpayers Australia, we receive a steady stream of comments from
aggrieved taxpayers who have had to fight tooth and nail for their
rights in the face of an intransigent Tax Office.
''Like Kurzer, many of these taxpayers find themselves out of
pocket and emotionally scarred. Many simply give up, having no stomach
for the continued fight, even though they know they are innocent.''
A Tax Office spokeswoman said the office could not comment on a matter before the court.
Inspector-General of Taxation Ali Noroozi is reviewing the Taxpayer’s Charter and the legal protections afforded to taxpayers.
canberratimes.com.au 17 July 2014
The Australian Tax Office (ATO) is not a legal entity, and cannot lawfully collect tax.
There is a fair few letters that have been posted by people to confirm this fact.
No doubt the corporate media will dispel this to 'conspiracy theory websites'.