A recruitment agency was audited by the Office of State Revenue (OSR).

The OSR determined that the agency owed approximately $250,000 in payroll tax, interest and penalties.

At issue was the interpretation of the Payroll Tax Act which was amended in 2007 and salient sections pertaining thereto.

The objection to the amended assessments was not allowed by the OSR.

An appeal was filed and a conference held with the Crown Solicitors Office.

The matter was seemingly resolved with an outcome that the agency owed only about $100,000.

For some inexplicable reason the OSR refused to issue revised assessments as it did not agree with the settlement.

Accordingly a further objection was lodged with the ultimate outcome being the issue of revised assessments and nil additional payroll tax interest and penalty.