Sydney man sues ATO for allegedly ruining his life

A Sydney taxpayer is suing the Australian Tax Office, claiming he lost his business, his home and his marriage over a botched tax bill.

Architect Gary Kurzer spent eight years fighting a tax bill of $200,000 he was sent in 2006, Fairfax Media reports.

The Tax Office told Mr Kurzer he was liable for that amount in tax and penalties after he and his ex-wife sold two seaside units on NSW's central coast.

After years of dispute in forums such as the Administrative Appeals Tribunal, the Tax Office finally admitted it made a mistake and had based the bill on "incorrect methodologies".

The bill was corrected to just $8554.

Mr Kurzer is now trying to win $5.8 million in damages for the Tax Office's alleged negligence.

''The Tax Office is allowed to collect what it is entitled to collect,'' he was quoted as saying. ''It is not entitled to harass, to bully, to lie, to cheat, to force people into these situations when they don't owe the money."

The Tax Office has declined to comment publicly but said in legal papers that Mr Kurzer's case was weak because it did not owe him a duty of care.

The Federal Court will hear the case in September.

Source: Sydney Morning Herald

Author: Erin Tennant, Approving editor: Martin Zavan