ATO reviews decision to dump Keating tax bill

Sydney Morning Herald

4 days ago

The Australian Tax Office (ATO) has said it will review a decade-old decision to write off penalties and interest related to a tax dispute with an investment company owned by former prime minister Paul Keating.
The decision follows an ABC Four Corners report last week that revealed the details of the write-off of the penalties and general interest charge (GIC) in Keating's favour in 2015, which was described as unusual by the media group.
'We note concerns raised in the segment about GIC remission for a high-profile taxpayer, which we take seriously,' the ATO said in a statement. 'We are following up to ensure all processes were correctly adhered to.'
The statement did not refer to Keating by name. Last week, an ATO spokesman said it was unable to comment on specific taxpayers, due to obligations under taxpayer confidentiality laws.
Keating has been contacted for comment.
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The penalties and interest bill relate to the sale of a successful investment by Keating's company in Australian audio group Lake Technology, which was sold to US group Dolby Laboratories in 2004 at a valuation of $23 million.
Keating was a major investor, along with ad man John Singleton.
According to the ABC report, the interest and penalties bill was issued after the ATO discovered in 2012 that one of Keating's companies, Brenlex, had not reported profits from a Lake Technology share sale and owed $446,000 in tax.