‘Chilling effect’: How Revenue NSW tried to block complaints to ICAC

The NSW Ombudsman has issued an extraordinary slap-down of Revenue NSW, warning its conduct was “deeply concerning, inappropriate and unacceptable” after the government agency tried to block complaints being made to the corruption watchdog.

The public rebuke of Revenue NSW – the agency responsible for fines, taxes and debt collection – was sparked after it emerged the agency forced deeds of settlement and release to be signed, which attempted to stop complaints to the Ombudsman or the Independent Commission of Corruption.

Revenue NSW tried to block a complainant from taking their concerns to ICAC and the Ombudsman.Credit: Nathan Perri

A report to NSW parliament said the deed, which specifically mentioned the Ombudsman and the ICAC, was unlikely to be legally enforceable, but it had a “chilling effect on complaints”.

“It would in any event be dangerous for an agency to seek to enforce the provision,” the report said.

“In the case of the Ombudsman, ICAC and other key integrity agencies, it is a criminal offence to take detrimental action against a person for making a complaint or disclosure to, or for otherwise assisting, the integrity agency.”

The report said the Ombudsman had recently received complaints “about certain conduct of Revenue NSW” but in one case, an individual later said they wished to withdraw theirs after being forced to sign a deed of release as a condition of settling their dispute with Revenue NSW.

The deed said the complainant must “cease pursuit of and/or withdraw any existing complaints or applications for investigation or relief lodged with the NSW Ombudsman, the Independent Commission Against Corruption, the Minister and/or any other external body”.

The cover page of the deed, provided to the Ombudsman by Revenue NSW, bears the name of the NSW Crown Solicitor, according to the report.

Ombudsman Paul Miller said taxpayers had the right to make a complaint about a government department and there should never be any interference in that process.

“The conduct referenced in this report is deeply concerning, inappropriate and unacceptable,” Miller said.

“People have a statutory right to complain to integrity agencies, including to raise any concerns they might have about corruption, maladministration or other wrong conduct by a government agency or official.”

The chief commissioner of ICAC, John Hatzistergos, also weighed in, warning that “such a provision is contrary to the public interest that corrupt conduct and other forms of wrongdoing are reported to relevant agencies so that they may be properly assessed and, if appropriate, investigated”.

In a letter to the Ombudsman, the chief commissioner of State Revenue, Scott Johnston, confirmed two deeds had been signed in June after a “protracted dispute” over tax between Revenue NSW and the trustee companies for two family trusts, which started in April 2024.

“However even in such circumstances, I acknowledge that the inclusion of such terms was neither appropriate nor acceptable,” Johnston’s letter said.

The Ombudsman said the Premier’s Department or the Cabinet Office should issue a formal direction “reminding all government agencies that this practice is inappropriate and unacceptable, and that it is not to be done”.

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