The former tax official who exposed alleged "covert operations" by the ATO is now living a "Kafka'-esque nightmare" and must be protected gainst reprisal, says a key independent senator.
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Nick Xenophon says the case of former Taxation Office intelligence analyst Ron Shamir highlights the risks faced by anyone who exposes wrongdoing in public life.
Mr Shamir was sacked from his public service job last year after he went to the taxation watchdog with concerns that his bosses were acting unlawfully and unjustly branding an unknown number of taxpayers as cheats and ID fraudsters.
Mr Shamir is now pitted in a David and Goliath legal struggle with his former public service bosses who are bringing the full might of the Commonwealth government to bear as they try to silence him, even after the Fair Work Commission has found Mr Shamir's sacking was harsh, unfair, unreasonable and indefensible.
The legal battle with the Taxation Office has left Mr Shamir $200,000 in debt and struggling with health problems, simply, he says, for doing his job as a public official.
The ATO insists that no innocent taxpayers had been caught up in its anti-fraud operation and cited "privacy" in saying it would not discuss its dispute with Mr Shamir.
Senator Xenophon, who may win the balance of power in the Senate in Saturday's election, said the case underlined the need for stronger protections for those who exposed wrongdoing.
"This highlights the need for stronger whistleblower protection laws where someone has spoken out in the public interest," he said.
The South Australian independent said Mr Shamir had acted out of the best of motives and did not deserve to lose his job or to be caught up in a legal battle to regain his employment.
"Here's a man who has always wanted to do the right thing, at all times Ron was motivated by the highest standards of integrity and ethical behaviour," Mr Xenophon told Fairfax.
"He's been involved in a Kafka-esque nightmare, a dispute that has been a legal nightmare for Ron, and the law lacks clarity and certainty for those who speak out in the public interest."
Senator Xenophon also wants the national anti-corruption regime to undergo major reform, with his stance backed by several other independent senators and the Greens, who are pushing for a national Independent Commission Against Corruption.
Mr Shamir presented a dossier of evidence last year to the taxation watchdog, the Inspector-General of Taxation, supporting allegations that the ATO broke the law with its "covert operations" against an unknown number of innocent taxpayers.
Much of what is alleged cannot be disclosed by Mr Shamir under the strict secrecy provisions the ATO imposes on its current and former employees and Inspector-General Ali Noroozi said he could not discuss the case.
But documents released by the ATO under freedom of information, reveal that Mr Shamir warned his bosses in 2012 they were engaged in an overzealous response to a court decision that reined in the ATO powers to withhold tax refunds.
The ATO stands accused of secretly cancelling large numbers of tax refunds without informing the taxpayer or giving them the right of objection, using the misleading and unproven justification that "ID takeover" had occurred by an "unknown third party".
