Reviews of allegations of maladministration involving bias and prejudice

A review into the ATO’s management of a complex and long-running case

19 May 2026

We have completed our independent investigation into the ATO’s management of a complex and long-running case, which stretches back over ten years. 

Our review examined allegations of maladministration raised by a taxpayer and reported in the media in mid-2025.   

The role of the Tax Ombudsman is to improve the fairness and integrity of the tax system and we take very seriously any allegations where maladministration is alleged.  

Our investigation found that some but not all allegations of maladministration against the ATO were substantiated. 

I have reported my findings to the Commissioner of Taxation in relation to the historical procedural failings within the ATO, which did not meet the community’s expectations of an objective and impartial tax administrator.  

Equally, within our investigation we found there was no evidence to substantiate some of the complainant’s more serious allegations 

We will not be commenting further on the specifics of our findings. They are now a matter for the taxpayer and the ATO to consider. 

We will not be releasing the report publicly as it contains personal data about the taxpayer. We are legally required to maintain the confidentiality of all complaints.  

A review into the ATO’s controls for bias in decision-making and disclosures 

27 July 2026 

Based on our review into the ATO’s management of a complex and long-running case, this follow-up review considered broader systemic risks of bias or prejudice in the ATO’s decision-making and inappropriate disclosures of taxpayer information. It examined whether the failings identified in the historic case could occur now and whether the ATO’s current controls were effective in mitigating such risks. 

We found that the ATO has strengthened its controls to improve decision-making in recent years, in response to weaknesses identified 10 to 15 years ago, but there is room for improvement.  

Bias and prejudicial conduct can impact tax administration in many ways. For example, officers may depart from procedures or the law to reach a predetermined outcome because they believe they are acting in a “noble cause”. Alternatively, investigators can give too much weight to past compliance behaviours instead of looking at current evidence with fresh eyes.

Given the nature of the topic that was reviewed and our specific focus on the ATO’s internal controls, we did not seek broad public input for this review. However, we undertook targeted consultation with selected tax professionals and associations to gather insights into their experience with the tax system.

Our review is now complete and the full report is available below.