Liz, a resident, runs a travel agency business and she provides travel services to many high wealth individuals. On 4 April of the current income year she received a request from the Australian Tax Office (ATO) to provide information to the ATO on flights booked for two of her clients (James and Chris) for travel to overseas tax havens. Upon receiving the request Liz phoned up the ATO and indicated that she would not provide the information because she considered it was private. The ATO subsequently requested that Liz come in to the Tax Office, bring the relevant information with her and answer any questions required under oath. Liz replied that she would not be coming to the Tax Office to answer any questions and she would not be providing any information. Based on this information which of the following statements is most correct?

 

1. Liz can claim legal professional privilege in relation to the documents and so deny the ATO from accessing them.

 

2. Liz is not entitled to claim any compensation for the costs of coming into the offices of the ATO.

 

3. Liz only needs to provide information in relation to her own tax affairs not information held for her customers.

 

4. Liz must comply with the request for information and must attend the ATO offices to answer questions.

 

5. The Australian Tax Office (Commissioner of Taxation) is unable to make these requests because the law does not empower it.

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