This week's release by the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, of the Inspector-General's report, Review into the Australian Taxation Office's Change Program, has vindicated the IPA's claim for compensation on behalf of our members, the IPA reports.

The Inspector-General's report confirmed what later became evident - that at the time of deployment of the new system "it was not in an ideal state in terms of the number of existing defects or defects likely to arise".

The Institute of Public Accountants and chief executive officer Andrew Conway are disappointed that the ATO has disagreed with the Inspector-General's recommendation for compensation.

"Our members have every right to be outraged for not being compensated for the economic loss they have suffered.

"Our members underwent serious damage to their reputation as well as lost time in dealing with the ATO and their clients while attempting to resolve problems during the implementation of the Change Program. Some of our members even had to resort to obtaining finance to maintain cash flows during this period due to refund delays," said Mr Conway.

The Inspector-General's report acknowledged these impacts were frustrating and costly to tax practitioners and expressed disappointment that the ATO has disagreed with the recommendation to reconsider its position on compensation claims. The ATO does not consider the adverse impacts suffered by our members due to deploying a system before it was fully tested as defective administration.

"We are disappointed by the ATO's hard line approach. It is cold comfort to our members when an independent oversight body such as the Inspector-General recommends compensation is warranted and such calls are ignored."

The Institute of Public Accountants will be urging the ATO to reconsider its position on this matter. The Institute will also be calling on the Government and Minister Shorten to assist in seeking a satisfactory outcome for its members and other tax practitioners.

About the Institute of Public Accountants (Formerly National Institute of Accountants): First formed in 1923, Australia's Institute of Public Accountants has been driving professionalism, influencing policy and promoting the interests of its members on a local and global stage for nearly 90 years. The Institute of Public Accountants has grown to be one of the three recognised professional bodies for accountants in Australia. It now represents the interests of over 22,000 members and students. The Institute of Public Accountants is a specialist in the small-medium enterprises and small-medium practices space with a large number of its members working in these areas.