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Debt collection agency, Recoveriescorp and the Australian Taxation Office ("ATO"), have recently come under fire from the Australian Services Union ("ASU") after reports are being circulated about the ATO putting "prices" on the heads of tax debts.
The rumours have indicated that debt collectors for the outsource agency are being promised bonuses and incentives to convince debtors to finalise their tax debt. Officials from the ASU are concerned that such incentives may include individuals being subjected to excessive and high-pressure tactics.
Senior management from the ATO have indicated to ASU officials that they will undertake an investigation of the claims. The ATO has since released the following statement:
"Payments to agencies are based on a flat fee for service per case basis, regardless of the dollar value of the debt or the type of debt referred, or the amount recovered. The business model of our external suppliers is not something that the ATO has input into, their services are procured using comprehensive tendering processes and all activity is managed via a comprehensive governance framework".
ASU official Jeff Lapidos said in response: