ATO Services
Business Tax Disputes
Business tax disputes — covering GST, PAYG withholding, FBT, payroll tax, and income tax — can have serious consequences for a business's cash flow and viability. Getting the right legal advice early can protect your business and resolve the dispute more efficiently.
⚠ Business tax disputes carry 60-day objection periods and can escalate to ATO enforcement action including garnishee notices and director penalty notices. Act early to protect your business.
Does This Sound Like You?
Common situations we help with.
The ATO has issued a large GST or income tax assessment against your business
The ATO has assessed your business for GST, PAYG, FBT, or income tax in an amount you dispute. The clock is ticking on your 60-day objection window and you need urgent legal advice on your grounds and your realistic prospects.
Your workers have been reclassified as employees
The ATO or a state revenue office has determined that your contractors are employees, generating a PAYG withholding, superannuation, or payroll tax liability going back years. This is one of the most common and financially damaging disputes businesses face.
You've received a Director Penalty Notice
The ATO has issued a Director Penalty Notice (DPN) making you personally liable for your company's PAYG withholding or superannuation guarantee shortfall. A DPN must be responded to within 21 days — this is a critical deadline requiring immediate legal advice.
The ATO has disallowed deductions you believe are legitimate
The ATO has amended your business income tax assessment by disallowing deductions — for employee costs, equipment, interest, or other legitimate expenses. You want to formally object and argue the deductions were correctly claimed.
The ATO is garnishing your bank accounts or has a payment plan demand
The ATO has taken enforcement action — issuing garnishee notices to your bank or debtors, or placing pressure on you to enter a payment arrangement. You want to understand your rights, dispute the underlying liability, and stop or reverse enforcement action.
An FBT audit has identified a large liability
The ATO has audited your FBT compliance and assessed your business for benefits it says were provided to employees. You dispute the characterisation of the benefits, the taxable value applied, or believe exemptions should apply.
How It Works
Resolve your business tax dispute efficiently.
Describe the tax issue and the amount in dispute. A business tax lawyer will assess your position and advise on the most effective approach to resolving the matter.
Submit Your RequestSubmit your request
Describe the tax type, the ATO's position, and the amount in dispute. Mention any assessment dates or deadlines.
Dispute assessed
A tax lawyer reviews the assessment, identifies available objection grounds, and advises on the strength of your position.
Dispute managed
The objection or dispute is managed from preparation through to resolution — whether by negotiation, objection, or AAT appeal.
60 Days
Standard objection window — missing it may permanently forfeit your right to dispute the assessment
All 8 States
Business tax dispute lawyers matched across every Australian state and territory
Free
Initial consultation — understand your grounds and the best strategy before committing to anything
Many Settled
Business tax disputes frequently resolve through negotiation or AAT conciliation — without a final hearing
Before You Act
Practical questions about business tax disputes.
How long do I have to respond to a Director Penalty Notice? +
A Director Penalty Notice must be responded to within 21 days of issue. Depending on whether the company's obligations were reported on time, you may be able to avoid personal liability by placing the company into voluntary administration or winding it up within this window. After 21 days, this option is no longer available for "lockdown" DPNs. Immediate legal advice is critical.
Can the ATO issue a garnishee notice to my business bank account? +
Yes — the ATO can issue a garnishee notice directly to your bank or to debtors of your business, redirecting funds to satisfy the tax debt. The ATO does not need a court order to do this. Garnishee action can be devastating for business cash flow, making early engagement and dispute resolution critical to avoiding this outcome.
What is the difference between a GST dispute and an income tax dispute? +
GST disputes typically involve questions about whether a supply is taxable, entitlement to input tax credits, or the GST treatment of specific transactions. Income tax disputes involve questions about assessable income, allowable deductions, and the correct taxable income. Both follow the same objection and appeal process, but the substantive law differs significantly.
Who handles payroll tax disputes — the ATO or the state? +
Payroll tax is a state tax — disputes are handled by the relevant state revenue office, not the ATO. Each state has its own payroll tax legislation, rates, thresholds, and dispute processes. If your business operates across multiple states, you may face simultaneous state payroll tax issues alongside ATO PAYG and superannuation disputes.
Can I negotiate a settlement with the ATO on a business tax dispute? +
Yes — the ATO has a settlements policy and regularly settles disputes before a final hearing, particularly at the AAT conciliation stage. A settlement can resolve both the substantive liability and associated penalties and interest. Legal representation significantly improves settlement outcomes by ensuring the ATO is negotiating with a well-prepared counterpart.
Does objecting to an ATO assessment protect my business from enforcement action? +
Not automatically — an objection does not pause ATO enforcement. However, you can separately request that the ATO defer enforcement action while the dispute is on foot. The ATO will often agree to hold enforcement action pending a bona fide dispute, particularly where a formal objection has been lodged and the matter is progressing.
Have a question not covered here? Submit your request and a tax lawyer will be in touch.
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