Saralnama
The Australian Taxation Office (ATO) has paid over ₹42 crore to Recoveriescorp, a private debt collector, to recover tax debts. Since 2022, Recoveriescorp staff have worked inside ATO offices and started chasing debts under their own name in 2024. More than 3.5 lakh taxpayers, including welfare recipients, were referred to Recoveriescorp this year. Some taxpayers received final notices demanding payment within seven days, or legal action could follow. Complaints about harsh recovery tactics have increased. The ATO says Recoveriescorp follows strict guidelines and treats customers with respect. Critics say the ATO does not fully consider vulnerable taxpayers’ situations. The ATO aims to recover about ₹2.7 lakh crore in outstanding tax debts. The contract with Recoveriescorp is fee-based, with no bonuses for performance. The tax office recently introduced a vulnerability framework to better understand taxpayer needs. (Updated 2 Nov 2025, 20:04 IST; source: link)