Michael: More than $272,000 in interest remitted

Name changed to protect privacy.

Michael came to the Tax Ombudsman with concerns about the ATO’s debt recovery action and its decision not to remit the general interest charge (GIC) on his tax debt. His concerns included recovery activity continuing while an objection was being processed, difficulties engaging with the ATO and the rejection of his request for GIC remission.

We investigated whether the ATO was correct in not remitting the GIC. Our investigation found that, while the ATO had considered Michael’s request and ultimately applied substantial remissions, the appropriate action had been delayed.

The ATO ultimately remitted $272,889.93 in GIC, achieving Michael’s preferred outcome. Only a minimal GIC balance remained, with an interim payment plan established.

Outcome: $272,889.93 in GIC remitted, providing substantial relief and a manageable path forward.