The Australian Taxation Office (ATO) has been criticized after a Supreme Court ruling stayed a long-running tax fraud case against a Queensland therapeutics entrepreneur.
The case, The King vs Julie Clarke, was prosecuted by the ATO in 2019, but was stayed by Justice Paul Smith in the Queensland Supreme Court on October 3, due to misconduct by an ATO officer in gathering evidence.
The ATO blurred civil and criminal boundaries by using compulsory disclosure powers in a criminal case.
The ruling has sparked union anger and debate over accountability in the agency's fraud investigations, with the ATO accused of scapegoating juniors.
An appeal now looks likely following the judicial findings.
Author's summary: ATO faces criticism after court ruling on tax fraud case.