The Administrative Appeals Tribunal is independent of the ATO and is the place to go if the argument is basically about the facts. Proceedings are fairly informal, and it is feasible for taxpayers to appear for themselves and even, occasionally, to win.

The taxpayer may be represented by a lawyer or someone else, such as a tax agent. The ATO is represented by its own officers in routine cases.

The tribunal is not bound by the rules of evidence, and may allow evidence not admissible in court. Hearings are in private if the applicant wishes (most decisions are publicly reported).

The tribunal has wider power than a court to review the exercise of the commissioner’s discretion. It puts strong emphasis on settling matters, and of the several hundred matters that go to the tribunal annually only 50 to 100 ever proceed to a formal hearing.

Costs will not be awarded against a taxpayer.