Saturday 28 June 2014


RACIAL DISCRIMINATION ACT 1975 - SECT 18C/ Magistrate Lisa Stapleton / Offensive words

So who makes the decision that  it is offensive in the first place. It's time people toughened up.
It is particularly disturbing that the shonky NSW Magistrate  Lisa Stapleton  also  believes words can be taken out of context. Clearly this incompetent NSW magistrate is out of touch with community standards.
Offensive behaviour because of race, colour or national or ethnic origin
             (1)  It is unlawful for a person to do an act, otherwise than in private, if:
                     (a)  the act is reasonably likely, in all the circumstances, to offend, insult, humiliate or intimidate another person or a group of people; and
                     (b)  the act is done because of the race, colour or national or ethnic origin of the other person or of some or all of the people in the group.
Note:          Subsection (1) makes certain acts unlawful. Section 46P of the Australian Human Rights Commission Act 1986 allows people to make complaints to the Australian Human Rights Commission about unlawful acts. However, an unlawful act is not necessarily a criminal offence. Section 26 says that this Act does not make it an offence to do an act that is unlawful because of this Part, unless Part IV expressly says that the act is an offence.
             (2)  For the purposes of subsection (1), an act is taken not to be done in private if it:
                     (a)  causes words, sounds, images or writing to be communicated to the public; or
                     (b)  is done in a public place; or
                     (c)  is done in the sight or hearing of people who are in a public place.
             (3)  In this section:
"public place" includes any place to which the public have access as of right or by invitation, whether express or implied and whether or not a charge is made for admission to the place.

Friday 27 June 2014

Senator calls for Royal Commission into financial planning industry
Clearly there is a problem with ASIC and its complaints register.
With AFSA previously called ITSA 90 % of complaints made about shonky Trustee are fucked over because Matthew Osborne , Principal Legal officer is advising regulation that a trustee has the discretion to fuck over and breach the Bankruptcy Act.
This allows AFSA to protect shonky trustee like Paul Pattison. After an FOI, AFSA admitted they had only received a small number of complaints about Pattison. The fact actually is AFSA received over 40 complaints about Pattison and still failed to act. AFSA also misled Senator John Williams on this.
As with the shonky Financial Adviser Peter Holt ASIC failed to act on numerous complaints made against him. This would have been because of the shonks working in the ASIC Legal department fucking over ASIC obligations
Bob Katter's daughter previously worked in ASIC's Legal Department in Sydney.
Australian Broadcasting Corporation
Broadcast: 26/06/2014
Reporter: Sarah Ferguson
Misconduct by financial advisers detailed in a Senate committee report questions the credibility of the Commonwealth Bank and financial regulator ASIC to such a degree that a Royal Commission into the industry is needed, according to Senator Mark Bishop.

Transcript

SARAH FERGUSON, PRESENTER: Allegations of fraud, forgery and a cover-up have emerged from a Senate inquiry into the financial regulator and Commonwealth Bank.

The Senate report has slammed ASIC's handling of rogue financial planners at the Commonwealth Bank and is calling for a Royal commission.

The bank is accused of encouraging a culture where advisors were rewarded with big commissions for talking clients into risky products, and when clients lost money, the wrongdoing was covered up and compensation was minimal.

The Senate Economics Committee has described the corporate watchdog as timid and hesitant in its handling of the case.

Retiring Labor senator Mark Bishop, who chaired the committee, joins me now live from Canberra.

Mark Bishop, welcome to 7.30.

MARK BISHOP, RETIRING LABOR SENATOR: Thank you and good evening.

SARAH FERGUSON: Now, you're calling for a Royal commission into the Commonwealth Bank and ASIC. Just starting with the bank, what have they done to warrant that call?

MARK BISHOP: What they've done is that they have not done enough. They haven't opened up their books. They haven't disclosed the full extent - the full number of clients who have been affected. They haven't paid adequate compensation to those who haven't been offered compensation. And more importantly, we're still unaware, after six months, as to the real extent of the damage. It's time to open up the books.

SARAH FERGUSON: Alright. Well tell me what you think the real extents of the damage is. What sort of number of victims of this dodgy financial planning are we talking about?

MARK BISHOP: We know the Commonwealth Bank's arm had 300,000 clients over a period of years. We know that 400 or a few more have received some form of compensation. We know that at least 7,000 files are considered to be suspect. Somewhere between 400 and that 7,000, possibly up into the tens of thousands of persons have suffered real harm, haven't received adequate compensation and deserve to have their files reconstructed and re-examined in a transparent, open, accountable manner.

SARAH FERGUSON: Now, the Commonwealth Bank tonight is saying that they've apologised for the mistakes of the planners that were identified by your committee and that they now have robust procedures in place to stop that sort of dodgy planning advice coming again. Do you accept that?

MARK BISHOP: I accept that they have put in place some remediation, that they have paid $50 or $60 million to some clients. We still don't know how many clients are affected. There hasn't been a full independent examination of their books and we do know that those clients who retained reputable law firms to act on their behalf received significantly higher compensation payments than those who used the services offered by the Commonwealth Bank. Yes, they've made some changes, but nowhere near enough.

SARAH FERGUSON: So you're saying that the Commonwealth Bank is still covering up the extent of the number of victims and the extent of their suffering?

MARK BISHOP: I'm saying that the Commonwealth Bank needs to release the full number of clients, the number of clients who have lost serious amounts of money, the reasons for those losses and offer compensation via a reputable accounting firm or a reputable legal firm to end this nightmare that thousands and thousands of individuals and families are going through.

SARAH FERGUSON: Now, what did the Commonwealth Bank do when it realised that it had these planners offering very high-risk advice? Did it move quickly to shut them down?

MARK BISHOP: No, no, it didn't. It acted inordinately slowly. Those financial planners had thousands of clients, they were reaping in millions of dollars of fees, a large share of that went up the bank chain in terms of profit and was returned to shareholders. It was only after extensive, repeated and extensive demands for inquiry and report and repair did the Commonwealth Bank put into place some mechanisms for change.

SARAH FERGUSON: So are you saying the Commonwealth Bank kept those financial planners in place knowing what they were doing?

MARK BISHOP: A number were let go - were removed after some years. A large number of those financial planners still remain in the bank and some indeed have been promoted.

SARAH FERGUSON: Now your report also looks at the behaviour of ASIC and they're part of your call for a Royal commission. How quickly did ASIC respond to the whistleblowers who came to them reporting that they were suffering at the hands of these financial planners?

MARK BISHOP: If I have been critical of the Commonwealth Bank, I'm equally critical - the report is equally critical of ASIC. It has been slow, it has been unresponsive, it hasn't taken reports seriously, it hasn't pursued investigations properly, agreements that have been reached haven't been enforced properly. Its tale is a tale of woe and clients and people in the wider community have continued to suffer because of their inordinately unresponsive and slow reaction.

SARAH FERGUSON: And they're about to have a fairly large budget cut, ASIC. Is the situation going to get worse for them?

MARK BISHOP: As this industry grows, as it goes into a trillion-dollar industry, as more firms emerge and lobby and gain business, we need to have a strong, effective, feared regulator. That's going to mean that Government in due course is going to have to allocate further funds, by whatever means, so that ASIC can do the job that's needed to be done on behalf of millions of Australians.

SARAH FERGUSON: Mark Bishop, thank you very much indeed for joining us.

MARK BISHOP: Thank you very much.

Thursday 19 June 2014

Queensland government and Supreme Court's relationship descends into crisis

Australian Broadcasting Corporation
Broadcast: 19/06/2014
Reporter: Matt Wordsworth
Wow!!! only in Queensland!!!
I am sure Tim Carmody will be a great help to  the premier..............

Just like the shonky Magistrate Lisa Stapleton is in NSW!!!!!!!!!!!!!

One of Queensland's most senior judges has questioned the appointment of a new Chief Justice as the relationship between government and Supreme Court descends into crisis.

Transcript

SARAH FERGUSON, PRESENTER: An unprecedented legal and political stoush has erupted in Queensland over the appointment of a new Chief Justice, who's been described as a puppet willing to do the State Government's bidding. There are calls from within the legal profession and even the judiciary for the new chief judge, Tim Carmody, to resign. One of the state's most senior judges sitting on the Supreme Court bench is now openly questioning the independence and ability of the new appointee and has called on him to resign. Matt Wordsworth reports.

MATT WORDSWORTH, REPORTER: It was this announcement by the Queensland Premier which sparked a heavyweight battle in the legal community.

CAMPBELL NEWMAN, QUEENSLAND PREMIER: I'm very conscious that it is a very historic day indeed.

MATT WORDSWORTH: The Premier and the Attorney-General Jarrod Bleijie elevated Chief Magistrate Tim Carmody QC to the highest judicial position in Queensland, the office of Chief Justice.

JARROD BLEIJIE, QLD ATTORNEY-GENERAL (June 12): I thank the legal community for the consultation, the extensive consultation that we've undertaken and I thank the legal community in their numbers, obviously today, the support, Mr Carmody, that you have amongst the profession and in the community for your elevation to high office of Chief Justice.

MATT WORDSWORTH: After a week of bitter infighting, a Supreme Court judge is now openly demanding Mr Carmody step aside.

Is this a crisis in the Supreme Court?

PETER DAVIS, BARRISTER: I think to describe that as a crisis is an understatement. It is like the position of the Titanic five minutes after they've hit the iceberg.

MATT WORDSWORTH: Until he resigned last week in protest, Peter Davis was the president of the Bar Association and one of the state's highest profile barristers, prosecuting Bundaberg surgeon Dr Jayant Patel and notorious sex offender Robert John Fardon. Peter Davis was consulted over the appointment of the new Chief Justice.

PETER DAVIS: I met with the Attorney and with his chief-of-staff at Parliament House and there was a frank discussion about who ought to be the next Chief Justice of Queensland.

MATT WORDSWORTH: Suffice to say you weren't urging the appointment of Tim Carmody.

PETER DAVIS: I think that's obvious.

MATT WORDSWORTH: Tim Carmody has been the centre of controversy for months, accused of siding with the Government over its controversial anti-bikie laws.

WALTER SOFRONOFF, BARRISTER: To appoint somebody who is overtly publicly supportive of a government at a time when there's a debate about the propriety of the actions of the Attorney-General vis-a-vis the court, for a judicial officer, a junior judicial officer, magistrate to do that and then to see him offered this promotion is a very disturbing thing.

MATT WORDSWORTH: Walter Sofronoff says as a Family Court judge, Carmody was found by an appeals court to have cut and pasted paragraphs of a previous judgment into a subsequent one.

WALTER SOFRONOFF: He patched together, something like a university student would do an essay, hoping it would pass muster. The result, of course, was that it was overturned unanimously by the appeal court of the Family Court, the full Family Court. And what do you think was the effect on the husband and wife?

MATT WORDSWORTH: At the announcement of his appointment, one of the first questions Tim Carmody faced was about his independence.

TIM CARMODY, INCOMING QUEENSLAND CHIEF JUSTICE: I am fiercely independent. If my views happen to coincide with the Government's views, that's pure coincidence. There'll be many times when I disagree with the Government's position, but again, that's irrelevant to the job I'm doing.

MATT WORDSWORTH: In other media interviews, he revealed not one Supreme Court judge rang to congratulate him.

TIM CARMODY (June 12): I've often said, and I'm sure nobody will argue, that I may not be the smartest lawyer in the room, and if you were in a room with me and I was the smartest lawyer, it might be time to leave it. But, there's more to being a Chief Justice than a black letter lawyer.

MATT WORDSWORTH: Solicitor and vice president of the Queensland Council of Civil Liberties Terry O'Gorman says it harks back to another era.

TERRY O'GORMAN, VP, QLD COUNCIL OF CIVIL LIBERTIES: This is yet again an indication of the fact that we are back fair and square in Joh land.

MATT WORDSWORTH: He says it's reminiscent of the meteoric rise of former Police Commissioner Terry Lewis, a central figure in the Fitzgerald corruption inquiry of the 1980s.

TERRY O'GORMAN: He leapfrogged dozens of senior police officers. The comparison between this appointment of Chief Justice and that of Sir Terry Lewis is eerie and extremely worrying. The only difference is Mr Lewis was later found guilty of corruption; there's no suggestion that Judge Carmody is anywhere along that track.

MATT WORDSWORTH: Corruption fighter Tony Fitzgerald himself weighed in with a statement, saying, "... it's deeply troubling that the megalomaniacs currently holding power in Queensland are prepared to damage even fundamental institutions like the Supreme Court and cast doubt on fundamental principles like the independence of the judiciary."

And last night in a speech, one of the state's most senior judges, Justice John Muir of the Court of Appeal, openly called for Tim Carmody to step aside.

JOHN MUIR, QLD COURT OF APPEAL (male voiceover): "... the obvious lack of support for the Chief Magistrate’s elevation ... see(s) that the only appropriate course is for him to withdraw".

WALTER SOFRONOFF: That is a remarkable event. A man who is thoroughly conservative has been provoked to make the speech that he did last night at the North Queensland Bar Association dinner. I've never seen anything like it.

MATT WORDSWORTH: The ABC has been told Tim Carmody has taken leave and not available for comment. The Attorney-General Jarrod Bleijie issued a two-line statement.

JARROD BLEIJIE (male voiceover): "Judge Carmody's professional and life experience is both extinguished and diverse. His Honour has the keen legal knowledge, administrative skills and integrity that are essential qualities for the role of Chief Justice."

MATT WORDSWORTH: The question now is whether other members of the Supreme Court will speak out.

WALTER SOFRONOFF: It's time to remove himself from the picture so that controversy doesn't attach to the Supreme Court and so that the judges can be at peace.

SARAH FERGUSON: Matt Wordsworth reporting.

Wednesday 18 June 2014

FOI APSC/ Audit Committee

So who is on the APSC Audit Committee?
Why are these committee members not ensuring the shonky Commissioner Sedgwick and shonky Karin Fisher not comply with their obligations under the APS ACT.

From: fionabrown01@hotmail.com
To: foi@apsc.gov.au
Subject: RE: FOI Robert Cornall [SEC=UNCLASSIFIED]
Date: Thu, 19 Jun 2014 11:19:07 +1000

Hi Chris,
FOI could you please supply me with the names of the people on the APSC Audit Committee for the past 3 years.
Also could you please supply me with a copy of the APSC Audit Committee Guidelines.
Thanking you
Fiona Brown
Confidential Emails from the NSW Labor Party
Wow! I really like getting confidential emails from the NSW Labor Party......... I also dont really know how I got on their list and find it funny that this alert is confidential and should never be distributed to anyone outside the Campaign!!!!!
Does NSW Labor actually want me on their Campaign when I am exposing Systemic corrupt conduct in Government Departments????????????????

--------------------------------------------------------------------------------
Date: Wed, 18 Jun 2014 22:01:43 +0000
From: digital@nswalp.com
To: fionabrown01@hotmail.com
Subject: CAMPAIGN BULLETIN: Stop the Cuts Campaign
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Campaign Bulletins contain important information. If you are missing any alerts, call John Harding-Easson on 9207 2000.


THESE ALERTS ARE STRICTLY CONFIDENTIAL & SHOULD NEVER BE DISTRIBUTED TO ANYONE OUTSIDE YOUR CAMPAIGN TEAM

Dear Candidates and Campaigns,

In late June, NSW Labor will be launching a six-week "Stop the Cuts" campaign, focusing on the NSW Liberals' cuts to health.

Party Office will provide materials, some of which will be payable under entitlements.

Please find the campaign action plan here.

Organisers will be in touch with MPs this week. Contact David, Dom, Josephine or Rose for more information.
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Tuesday 17 June 2014

FOI  Australian Public Service Commission

Robert Cornall, the former Public Servant who has an  AO after his name cost Tax payers $83,000 for an inadequate report into Manus Island.
This is not the first time Robert Cornall has F....ked over a serious complaint or investigation.
Senator Sarah  Hansen Young  questioned this shonk in Senate Estimates last week.
Apart from the seriously flawed report on Manus Island  it should be considered a conflict of interest considering  his former position as secretary for the Attorney Generals Department where he would have protected atrocious systemic corrupt conduct in Government Departments.
Clearly it is like asking the Catholic Church to investigate the Catholic Church!!!!
In the APSC 2010-2011 Annual report it was Robert Cornall who was asked by Commissioner Sedgwick to investigate one complaint made to  the APSC under S 41.
Clearly the Agency Head which was investigated by Cornall was thanking their lucky stars that the complaint was F...ked over by him. The other 15  complaints of Agency Heads where F...ked over by Sedgwick.
So how many other shonky investigations has Cornall done for the APSC.....
From: fionabrown01@hotmail.com
To: foi@apsc.gov.au
Subject: FOI Robert Cornall
Date: Tue, 17 Jun 2014 11:49:26 +1000

To whom it may concern
Under freedom of Information please advise me how many investigations Robert Cornall has done for the Australian Public Service Commission since 2010
Thanking you
Fiona Brown

Monday 16 June 2014

The tax office and the expensive muzzle on complainants

A special investigation finds the tax office is aggressively pushing aggrieved taxpayers into settlements to protect its own people. One investor tells Crikey he’s been ruined by fighting big firms hired by the ATO.
Taxpayers, tax lawyers and even a current senior tax office lawyer have criticised the Australian Taxation Office for forcing taxpayers into “confidentiality clauses” that seek to muzzle them by imposing “deeds of releases” to cover up errors and potential maladministration.
As new tax office chief Chris Jordan starts in the role this week, there is also criticism of the ATO’s use of top-tier law firms to intimidate taxpayers, and claims it may be breaching the government’s Legal Services Directions that set out requirements for the provision of legal services to the Commonwealth.
Crikey spoke with a number of taxpayers, accountants and tax lawyers — many wouldn’t go on the record fearing a potential backlash from the tax office but nearly all were united in the belief the ATO is aggressively pushing aggrieved taxpayers into settlements designed to protect particular ATO officers that erred rather than the Commonwealth. Clause 4.5 of the Legal Services Directions states the Commonwealth and its agencies should not enter into confidentiality clauses unless there is a need to protect the Commonwealth’s interests.
The difficulty with releases and confidentiality provisions is that they are exclusively for the benefit of the [ATO] commissioner,” David Hughes, a tax partner in law firm SMH Tax Lawyers, told Crikey. “Aggrieved taxpayers are silenced and ATO errors … are not brought into the public domain. This allows ATO officers the latitude to continue working without accountability to the public.
Confidentiality clauses in settlement deeds have their place in commercial settlements, but the Commissioner is at pains to emphasise that he negotiates on a ‘principled’ basis, not a commercial one. If that is so, then the principle by which they reach settlements must be transparent. He cannot have it both ways.”
But some lawyers see the benefit of commercial settlements. Andrew Robinson from Robinson Legal, who gained notoriety as the outspoken lawyer for Paul Hogan and John Cornell in their very public dispute with the tax office, believes early settlements are good.
Whether it’s right or wrong, making sure settlement discussions and settlement agreements don’t see the light of day probably means that all parties can be more open in their discussions which can lead to earlier settlements. While discussions take place they can’t be disclosed because they are without prejudice and if a settlement deed happens it’s bound by confidentiality so all parties know that nothing they say should hit the public record.”
The case of Sydney architect Gary Kurzer shows how the ATO can try and force parties into a confidential settlement in an effort to protect its officers from future litigation. Kurzer and his partner sold two investment properties in 2006 under direct instructions from their bank. The taxpayers had cash losses from the sales, and were previously told by the ATO that GST did not apply to their circumstances. But the ATO launched an audit and handed them a tax bill of $207,000 in “GST and penalties” plus tax on “profits of $655,000” never earned.
After a five-year battle that Kurzer says ruined his health, relationship and finances, the ATO finally agreed to determine liability based on the information he had previously provided. This was communicated to Kurzer at the 11th hour at the doorstep of the Administrative Appeals Tribunal hearing room prior to a hearing before a senior member of the AAT.
Despite the matter settling, the ATO proceeded to issue another incorrect revised assessment of $120,000. Angered by the continued mistakes and mistreatment, Kurzer pursued the ATO for compensation under the Scheme for Compensation for Detriment caused by Defective Administration  — established to help Commonwealth agencies compensate persons who have suffered detriment as a result of an agency’s “defective” actions or inaction, and who have no other avenues of redress —  including the latest revised incorrect assessment.
The ATO has power to engage legal counsel under the Legal Services Directions, which is administered by the Attorney-General, when there is a legal claim. The Finance Circular 2009/9 is clear that the Legal Services Directions do not apply to a CDDA claim — it’s more a moral obligation to assist those who have suffered. Despite this, the ATO hired big law firm Minter Ellison to handle the CDDA claim. The ATO said in a statement:
It is not unusual for us to obtain legal advice where there is no legal claim or litigation on foot. Our views on CDDA claims comply with the Department of Finance’s guidelines.”
The ATO advised Kurzer of its decision after receiving advice from Minter Ellison, that no defective administration arose and no compensation was payable. Kurzer continued to owe $120,000. Minter Ellison charged the ATO $128,000 for this advice, as documents obtained by Crikey under freedom of information laws show.
I will continue to fight, not just because of my circumstances but also because the ATO are doing this to innocent people across the country every day, decimating families and small businesses.”
Kurzer was relentless, eventually pushing the ATO to review the CDDA claim for the second time where it was uncovered it made major mistakes in the revised assessment — Kurzer only owed $8554. The ATO continued to deny any liability for mistreatment during the audit and objection stages but now admitted it made mistakes in the revised assessment. Despite Minter Ellison being engaged to review Kurzer’s tax liability, it found no mistakes.
At a mediation meeting chaired by former royal commissioner Tony Fitzgerald and attended by Kurzer, ATO officers and Kurzer’s lawyers (appointed by the tax office), the deed of release shows the ATO offered $70,000 in compensation contingent on Kurzer releasing the ATO and every officer, employee and agent from any liability beyond the scope of the major calculation errors, and equally for all future claimswhether related or unrelated to the dispute.
The ATO also sought to silence Kurzer through a confidentiality clause. Kurzer accepted the $70,000 and agreed to release the ATO from any future liability on the basis the ATO does not stop him from pursuing his rights in relation to his mistreatment during the audit and objection processes and to delete a blanket ban on all future claims unrelated to the dispute. The ATO then refused to pay the $70,000 compensation.
In direct contradiction to this, the ATO told Crikey: “There is no compulsion for taxpayers to settle matters they do not want to settle. Settlements made in relation to a particular dispute do not affect future claims arising in relation to a completely unrelated dispute.”In addition to Minter Ellison’s inexorable fee of $128,000, Fitzgerald’s fee for conferences, preparation and the mediation was $12,650 — according to a tax invoice released under FOI —  while ATO appointed lawyers for Kurzer, LAC Lawyers, were paid $19,992 for legal advice and attendance at the mediation. The ATO refused to pay LAC Lawyers for any assistance to Kurzer after the mediation. In addition, the ATO expended $47,599 in relation to the CDDA claim. In total, $208,241 was spent on a case with an offer of $70,000 in compensation that was ultimately rejected by Kurzer.
Kurzer is highly distressed. In five years of attempting to gain justice he says he has lost everything he has worked for over 40 years, and faces imminent foreclosure. “Each day is a battle to stay afloat,” he told Crikey.
Minter Ellison was hired to check the ATO view and they came up with zero errors and zero compensation and I was intimidated by them in denying my rights. The ATO then attempted to silence me via an oppressive deed with a patronising offer of $70,000 to me as compensation for my losses and expenses over five years. Although that was a tiny fraction of my losses, to even accept this, they insisted on a massive legal gag on my rights.
I will continue to fight, not just because of my circumstances but also because the ATO are doing this to innocent people across the country every day, decimating families and small businesses. In tough times it is heinous that the ATO can expend huge amounts of public money to bankrupt people. What is the net advantage? People are forced onto welfare, instead of being active taxpayers. I will now be seeking a realistic monetary claim that reflects my losses in the Federal Court for negligence, breach of statutory duty and misfeasance against the tax office.”
A senior Sydney tax lawyer who is involved in negotiating settlements with the ATO on a regular basis but did not want to be identified said: “Settlements are sometimes instituted by the ATO because they know they have done the wrong thing. Unfortunately, in these cases the wrong thing ends up being hidden from the public by the use of a confidentiality clause. They won’t talk about what they did wrong.”
Allegations about the ATO’s use of legal services coincide with theannouncement last month by the Attorney-General’s Department that the ATO was the biggest user of legal services in the Commonwealth, spending $101 million dollars in 2012. The report shows a whopping 30% increase in the provision of external legal services (such as Minter Ellison and Clayton Utz) in just the last two years. At the same time the average rise in external legal costs across all government agencies was just 7%. External legal services accounted for $64.9 million of the total figure, while $46.1 million was spent internally.
Crikey reported in September the ATO had offered Serene Teffaha a $250,000 settlement to walk away from litigation she launched for bullying as a result of a whistleblower complaint. She was prepared to accept the offer and release the ATO commissioner from vicarious liability as long as she was not barred from pursuing the senior public officials personally for their misconduct against her. The ATO refused to settle on that basis.
My motivation is not money  —  just accountability,” she said. “It is perplexing the lengths the Commonwealth will go to, to protect the wrongdoers. Unfortunately for the Commonwealth they are now risking a whole lot more than just money.” Teffaha says she has been told the Commonwealth will back the personal defences of the officials involved by funding Clayton Utz’s services.
The Attorney-General’s Department is the guardian of how Commonwealth agencies pursue litigation. Crikey put a list of questions to the department and was told:
Questions regarding the ATO’s reasons for settling claims, legislative authority for engaging counsel, and its conduct in the handling of claims and litigation, should be directed to the ATO.”
    19
    • 1
      Modus Ponens
      Posted Tuesday, 8 January 2013 at 1:24 pm | PERMALINK
      Moral hazard when the the money at stake is not yours. That the ATO spent $128k on legal fees to pursue $120k says it all.
    • 2
      Suzanne Blake
      Posted Tuesday, 8 January 2013 at 1:27 pm | PERMALINK
      Hope the ATO are investigating the HSU payments for brothels that were claimed.
    • 3
      Posted Tuesday, 8 January 2013 at 3:26 pm | PERMALINK
      The Australian Thuggery Office may be prepared to spend $208,241 over a $8554 tax bill. But it probably won’t want to risk having the whole PAYG/GST system declaredunconstitutional over a $8554 tax bill. So, if the ATO starts treating me like it treated Mr Kurzer, I shall warn the ATO that as soon as I see the inside of a federal courtroom, I shall raise this and this.
    • 4
      Serenatopia
      Posted Tuesday, 8 January 2013 at 4:29 pm | PERMALINK
      Hi All — -Serene Teffaha (ATO Whistleblower with you) — -
      An excellent piece of investigative journalism Chris — -more pieces like this one Crikey!
      Wow! Oppressive deeds of settlement, wastage of public monies, serious maladministration cover-up and some very very expensive parrots!
      So we have proof that Minter Ellison and potentially other top-tier law firms are hired to ‘tick and flick’ the ATO approach, intimidating complainants into submission, rather than actually doing their job! The critical difference between following instructions and giving advice.
      The reality is that only $3.5million of the $101million in these legal costs has been clawed back. Yes — -they are really failing miserably — -all at taxpayer expense!
      A 30% blowout in external legal expenses and cries from the tax community for something to be done about oppressive and illegal agreements justifies a complete audit of the ATO’s use of deeds of settlements and their engagement of external law firms by the federal auditor-general.
    • 5
      Mav M
      Posted Tuesday, 8 January 2013 at 6:19 pm | PERMALINK
      Hiring expensive private law firms seems standard practise in all of these so-called independent agencies.
      * On the note printing bribery scandal, RBA hired Freehills instead of going to AFP. Freehills produced a nice CYA report at taxpayers expense.
      * A recent one, due to a clerical error, Industry Ministry released more info than it thought prudent on a FOI request from AFR. Then they went on to hire private legal guns to gag AFR.
    • 6
      Simon w
      Posted Tuesday, 8 January 2013 at 7:18 pm | PERMALINK
      The ATO did a confidential settlement with David Walsh (Founder of MONA) too. So no one knows if organized gambling is taxable or not, or if there was more to the case. The lack of transparency makes it difficult for accountants and lawyers to provide advice.
    • 7
      Geoff Dunstan
      Posted Tuesday, 8 January 2013 at 7:47 pm | PERMALINK
      I can only say, that if the position as put in this article is true - and it would be interesting to note any defence ! - then the procedures,judgements, apparent oppression and quetionable morals and ethics of the ATO are appalling and there should be a judicial investigation. How do these affairs proceed so far without proper protocols ?
    • 8
      RortyDog
      Posted Wednesday, 9 January 2013 at 1:00 am | PERMALINK
      Chris Seage - you are a brave man You obviously have all your assets under the mattress, no income, live in Nauru and compromising photos of most ATO officials. Otherwise you’re toast, and so are your children and your children’s children…
    • 9
      AR
      Posted Wednesday, 9 January 2013 at 6:44 am | PERMALINK
      Quel bloody surprise! It certainly shows the pointlessness of the recommendations of Mark Dreyfus’ whistleblower committe to be worse than useless given that the only one to be discussed was the brilliant shiney new innovation of passing complaints to ones senior officer.
      HA! And there was I thinking that one of the conditions adhered to by the Commonwealth is that “it should always be the ideal litigant” though not sure of which planet this should be.
    • 10
      Davies Steve
      Posted Wednesday, 9 January 2013 at 10:44 am | PERMALINK
      An excellent piece of investigative journalism. Well done to Chris and everyone concerned.
      The practices described contain within them some very serious questions. Questions that should be of concern to the Australian Public Service, Legal firms and the community as a whole. The corollary of this is that these practices and the questions that flow from it should be of concern to Government.
      The first point to note is that the issues revealed in the Crikey article are clearly systemic. If this were not the case then they would not be being defended by the ATO and, however tacitly, the Attorney General’s Department. The other point to note is that because these practices are systemic anyone can be subjected to them.
      The ATO, like the Australian Public Service as a whole, says it values transparency. Covering up errors and potential maladministration is not consistent with that value. Why are we allowing that value to be degraded through the use of confidentiality clauses?
      The Australian Government issued the Declaration of Open Government. Why is the conduct of Australian Public service agencies not being monitored to ensure the way they deal with citizens is consistent with the spirit and intent of that declaration? Given the fact that the taxation system touches the lives of all Australians the ATO should be leading the way in this area. They are not and they are spending a large amount of taxpayers dollars not doing so.
      Citizens in this country accept that everyone should pay their fair share of tax. However, this clearly should not extend to engaging in practices that amount to little more than vexatiously digging in their heals, muzzling individual taxpayers and destroying lives. This raises a very serious question. The community rightly expects decency in public administration. Why is the ATO engaging in practises that do not reflect decency in public administration?
      It is the role of the ATO to maintain the integrity of the taxation system. How do the practises outlined in the being engaged in contribute to that objective? The use of confidentiality clauses to muzzle taxpayers smacks more of the ATO protecting itself than maintaining the integrity of the taxation system. If that is the case then what the Crikey article reveals is that the ATO is perverting a key aspect of its own role (at great expense to the taxpayer), for little more than bureaucratic expediency.
      Back in 2008 Dr Ken Henry gave his speech Towards a tax and transfer system of human scale. At the end of that speech Ken commented as follows in relation to the architecture of the system,
      The Review Panel has been tasked with a ‘root and branch’ review, not just the ‘pruning and shaping’, of the tax and transfer system. Its deliberations involve a comprehensive examination of the structure of the system for the long term and its effects on individuals, businesses and Australia’s macroeconomic performance.
      We will be looking for ideas that address system complexity and deliver superior economic, social and environmental outcomes.
      Our goal is to identify enduring reform directions for the tax and transfer system; to craft an architecture that might support multiple reform packages over many years.
      If we are going to find that architecture, and give it human scale, we are going to have to be a lot more imaginative, a lot more creative, and we are going to have to get much better at seeing things from the perspectives of people like Jim.
      In what way shape or form does muzzling taxpayers reflect a taxation system operating on a human scale? I, like most reasonable people, say not at all.
      Quite frankly I am surprised that legal firms engaged by the ATO in relation to these matters do not consider the potential risk to there own business reputation. I wonder whether the relationship between the ATO and the legal firms they engage is simply too close. This is certainly something I have noticed within the management consultancy sphere. Overly close relationships can become problematic and distort decision making.
      What I do see in all of this is the internal corporate culture of the ATO. Specifically,
      Blind compliance as opposed to compliance
      Severe risk aversion as opposed to risk management
      Reputation management and spin as opposed to ‘walking the talk’
      A belief in management infallibility
      Severe hostility to critical questioning
      The question for us all is whether we can afford to have these internal cultural attributes spilling over into the wider community? I think not. Especially given the apparent legal costs alone.
      Steve Davies
      Founder, OZloop
    • 11
      Nicholas Bury
      Posted Wednesday, 9 January 2013 at 1:54 pm | PERMALINK
      I was very surprised to experience the alleged fraudulent M.O. utilised by a given segment of the ATO when attempting to seemingly extort funds from taxpayers to which the ATO knowingly had no entitlement, especially after having recovered many millions for them from criminals during my 30 year police service career, and worked with honest ATO employees, some of whom had told me that the ATO has been overdue for a Royal Commission for years, but I foolishly disregarded their comments.
      Most ATO staff are honest as most police are honest. The minority of dishonest ATO staff differ from corrupt police in that they are not trying to corruptly obtain monies for themselves, but are following instructions from above to maximise ATO revenue.
      Enquiries made to date have elicited a number of horror stories regarding attempts by the ATO to monster law abiding taxpayers when attempting to procure settlements to which the ATO had no claim of right.
      Their employees have enjoyed exercising untramelled powers for many years against innocent parties, who were either too poor or else too timid to assert their rights.
      History indicates that the perpetrators concerned will eventually precipitate a tipping point. Corrupt police and pedophile priests thought that they were above the law, but times change. Systemic corruption in Australian police forces has been broken, and pedophile priests have a forthcoming Royal Commission to fear. Many of them will experience the horrors of incarceration.
      These unlawful/obnoxious ATO practices will probably likewise cease after some of their number are either sent to prison, or else are dismissed from the public service and lose their superannuation entitlements consequent to committing criminal offences. Their day of reckoning will come.
    • 12
      Serenatopia
      Posted Wednesday, 9 January 2013 at 3:41 pm | PERMALINK
      Excellent Comments.
      To Geoff Dunstan:
      The authenticity of the allegations raised in the article against the ATO and top-tier law firms are supported by the relevant links and FOI documentation provided. That is why I admire Crikey and their journalists. They dot their i’s and cross their t’s!
      It is no secret that Minter Ellison charged $128,000 to review a matter, at that time, incorrectly estimated to be worth $120,000. They were engaged to review Kurzer’s tax liability and determined that there were no errors or mistakes. Only a few months later, a second internal review uncovered $357,000 worth of mistakes and errors in Kurzer’s tax assessment.
      What exactly did Minter Ellison do? Are we saying that one of the largest international corporate law firms got this basic review wrong? I wonder how many other wrong things they do for their friends in the ATO? And how much those wrong things cost the taxpayer? I would absolutely love to hear their defense…
      More so, I would love to hear the ATO’s defense that would justify the spending of over $208,000 of public monies on intimidation tactics! Ultimately, Kurzer continues to face the trauma of being ravaged by these pirates and their parrots!
      It really is all very repulsive, especially when you multiply $208K by countless other cases!
      You ask: How do these affairs proceed so far without proper protocols?
      That’s because we have improper people in key positions of leadership, improper systems that protect them and improper laws and powers that fuel them. Just have a look at the outrageous response from the Attorney-General. Please refer all problems back to the agency you have a problem with.
      These top-tier law firms have only exposed themselves — -You play with the Commonwealth you make yourself a matter of public interest!
      The Legal Services Directions, after all, apply to them as much as they do the Commonwealth and its agencies!
      We need more than just a Royal Commission — -We need a Royal Inquisition…
      For more comments on the article please go to:
    • 13
      Arty
      Posted Wednesday, 9 January 2013 at 4:31 pm | PERMALINK
      Is the culture of the ATO based on a premise that all tax officers are angels and all taxpayers are crooks?
    • 14
      Rortydog
      Posted Wednesday, 9 January 2013 at 6:53 pm | PERMALINK
      A real loser in this article is Minter Ellison, whose competence, professionalism and ethics have been put into question. It takes many years to build a reputation. Blind box ticking, poor or ill-prepared advice and obsequious association with this sort of bullying will do Minters reputation a lot of harm.
    • 15
      MJPC
      Posted Thursday, 10 January 2013 at 8:40 am | PERMALINK
      Excellent article; all power to Serene Taffaha. Whilst the ATO have sought to buy her silence it’s pleasing to see she is going after the criminals contained therein. The ATO, like all government (both Federal/State and Local) rely of management doing their dirty work without question, and there are too many Serene Taffaha’s in the departments who just take bad management without sayiong enough is enough and fighting for justice and integrity, something unknown to the managaement of the ATO.
      Serentopia, I agee Royal Inquistions required for the ATO (for a start) then the other departments who have decided they are outside of the law.
    • 16
      lespauljunior
      Posted Thursday, 10 January 2013 at 1:09 pm | PERMALINK
      Chris: many thanks for an excellent story, including my particular case with the ATO.
      I mention here that I paid tax for this matter in 2008 ($13,265) and after a review by the Assistant Deputy Commissioner in 2012, she found that the real tax was $8,400, so I had actually overpaid my tax.
      In the interim, they wanted $207,000 in GST and penalties, tax on (non-existent) “profits” of $665,000 and following the successful 2010 AAT appeal, they issued two further erroneous tax bills: one for a (non-existent) “partnership” for $175,667 and upto $230,369 for me individually. I was threatened with legal action for recovery, and they were charging interest at upto 12.03% p.a. Note, too, that they had previously written to me stating that GST did NOT apply to the matter.
      Notwithstanding the Tax Law errors (we relied on Tax Laws to calculate our tax, the ATO used no such laws) the pure maths was out by some $406,000 at this stage. Later, they admitted in writing that their total mistakes were in fact $354,847.
      So the ATO expect that you would go to court to defend yourself against pure calculation errors, as well as Tax Law errors.
      Let alone considering the expenditure of $128,000 of public moneys for “legal help” to deny that the ATO made these simple mistakes, consider the sum paid to ATO staff for 5 years of pursuing the matters: auditors, supervisors, the AAT lawyers, and the senior staff flown to Sydney (with attendant costs), the cost for the Mediator (as you mention) et al.
      However, the ATO expect that you (as a very small fish) will simply bear any costs to defend yourself, for as long as it takes, even against pure mathematical errors. They call this “a cost of compliance.”
      As you quickly go bankrupt, the public servants making these mistakes are paid for RDOs, superannuation, promotions, etc, from the public purse, as are the private legal firms… for as long as it takes, to make sure you are neutralised.
      In Australia, demands for money not based on lawful concepts is usually defined as “theft, blackmail, or extortion.” Just a thought.
    • 17
      lespauljunior
      Posted Friday, 11 January 2013 at 4:49 pm | PERMALINK
      It is also of interest that I asked both the ATO, and Minter Ellison for a copy of the brief, the terms of engagement, the fee basis, etc concerning their engagement by the ATO to “assist” in my claim. I have been told that such documents do not exists .. so it seems that the legal firm were engaged to do $128,000 of work with no brief, no scope of works, no fee basis …and using public moneys. Despite all of that time and money, they found “no errors” or any defective administration whatsoever.
      The $354,000 in errors was a 20 second bit of maths done by the ATO themselves.
      Kinda begs the question, then, of why pay $128,000?
      I guess they needed a few more weeks and another $130,000 to be able to compute that amount …
      I asked Minter Ellison to comment on these matters, they informed me in writing that they would not respond to my request. So much for the new “transparency” in the ATO.
    • 18
      lespauljunior
      Posted Saturday, 19 January 2013 at 2:33 pm | PERMALINK
    • 19
      lespauljunior
      Posted Saturday, 19 January 2013 at 2:34 pm | PERMALINK
      Other issues: