Tax Integrity and ATO Enforcement — Why You Need a Lawyer, Not Just an Accountant

by | Sep 23, 2025 | Tax Law

Tax Integrity and ATO Enforcement — Why You Need a Lawyer, Not Just an Accountant

The Australian Taxation Office (ATO) has sharpened its focus on tax integrity and enforcement. With stronger data-matching, increased audits, and more resources for compliance, businesses and individuals are facing heightened scrutiny.

When the ATO comes knocking, the difference between hiring an accountant and a tax lawyer could determine whether your matter is resolved quickly — or escalates into costly litigation.

What ATO Enforcement Looks Like in 2025

  • Expanded data-matching programs pulling information from banks, overseas tax authorities, and even platforms like Airbnb and Uber.

  • Audit activity targeting complex structures, foreign ownership, and high-wealth individuals.

  • Tax avoidance taskforces investigating aggressive tax planning schemes.

  • A tougher stance on penalties for late or incorrect filings.

(Source: ATO Tax Avoidance Taskforce — Latest News on Tax Integrity and Enforcement)

Why an Accountant Isn’t Enough

Accountants are invaluable for preparing returns, financial statements, and ensuring routine compliance. But once the ATO questions your affairs, you move from compliance to legal risk.

  • Accountants cannot claim legal professional privilege — so everything you disclose may be available to the ATO.

  • If the ATO alleges avoidance or evasion, this becomes a legal matter.

  • Negotiating settlements, lodging objections, and running litigation require legal expertise.

The Lawyer’s Role in ATO Disputes

A tax lawyer can:

  • Advise under privilege — protecting sensitive communications from ATO access.

  • Handle audits and objections — ensuring only the required information is disclosed.

  • Negotiate settlements — using legal strategy to reduce penalties or interest.

  • Represent you in litigation — if disputes escalate to the Administrative Appeals Tribunal (AAT) or Federal Court.

This is not just about numbers; it’s about defending your legal rights.

Case in Point

Imagine a business flagged by the ATO for underreporting income through overseas transactions.

  • An accountant can provide reconciliations and filings.

  • A tax lawyer can argue whether the transactions create a permanent establishment in Australia, whether anti-avoidance provisions apply, and whether penalties can be reduced.

Key Takeaway

With the ATO increasing its enforcement, now more than ever, businesses and individuals need legal protection.

👉 Use accountants for compliance.

👉 Use tax lawyers for disputes, audits, and enforcement.

If you’re facing ATO scrutiny, professional legal advice could protect your business — and your peace of mind.

For another example of how Australia asserts its taxing rights, see our recent blog on entertainers and Australian tax — Ricky Martin’s tour example.