ATO apologises for ‘unnecessary distress’ caused by on-hold tax debt recovery letters

Tax office says ‘we will review our overall approach to debts on hold before progressing any further’ after letters draw comparisons to robodebt scheme

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The Australian Taxation Office has paused a letter campaign alerting taxpayers they have historical “on-hold” debts after conceding its communication caused “unnecessary distress”.

The ATO said it would review its approach to the on-hold debt scheme but was not erasing the debts allegedly owed.

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