The ATO on Thur 26.4.2012, released early guidance to provide taxpayers with practical information regarding how it expects aspects of the MRRT instalment system will be administered for the transitional period. It says the transitional period commences on 1 July 2012 and ends when the Commissioner gives the taxpayer an instalment rate following the lodgment of the first MRRT return.
The ATO says the early guidance provides information for taxpayers on the following:
- the application of a default instalment rate for the transitional period;
- when and how an instalment rate may be varied;
- when the general interest charge applies; and
- when the Commissioner may exercise his discretion to remit the general interest charge.
The ATO has also released early guidance to outline the practical approach to the assessment and remission of administrative penalties for positions, which are not reasonably arguable, or for false or misleading statements during the period following the commencement of the MRRT and the extended PRRT. It says the early guidance will apply for a transitional period of 2 years.
In addition, the ATO has also released early guidance outlining its approach to examining joint venture arrangements for the PRRT, the proposed extension of the PRRT and the MRRT. Broadly, the ATO says it will be taking a risk-based approach to compliance with the proposed MRRT, the existing PRRT and the extension of the PRRT. Therefore, it says where an issue arises as a part of a joint venture arrangement, it will initiate examination (including audits, reviews, investigation and enquiries) at the level of the joint venture operator or manager.
Further, the ATO says the early guidance papers in relation to the above issues were all finalised before the final Bills received Royal Assent. As such, the papers are not publications which have been approved for taxpayers to rely on and do not provide protection from primary tax.
For taxpayers with comments and feedback regarding the early guidance, the ATO says comments are invited up until 1 July 2012 and can be sent to the ATO RRT implementation mailbox. It says all feedback will be reviewed in consultation with the NTLG Resource Rent Tax Sub-committee.
[LTN 78, 26/4]