The Australian Taxation Office has been cleared by the inspector-general of tax over claims of an improper issuing of garnishee notices.

A joint Fairfax-ABC investigation alleged the ATO was taking harsh actions against small businesses, by using performance indicators to incentivise the issuing of garnishee notices.

Inspector-general of tax Andrew McLoughlin’s review into these allegations has found no evidence of this.

ATO Small Business Deputy Commissioner Deborah Jenkins tells Ross Greenwood they welcome the findings.

“What those findings were was that our staff were using their powers appropriately and infrequently.

“We do want to give everybody the opportunity to pay their tax on time.

“I’m very conscious, every day the decisions we make can make or break a small business.”

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