With the Tax and Superannuation Laws Amendment (2012 Measures No 1) Bill 2012 receiving Royal Assent on 27 June 2012 as Act No 75 of 2012, the changes to the Commissioner’s discretion to retain “high risk” refunds have now come into place.
The ATO has released information to clarify how the amendment applies in certain situations. It said the discretion applies to refunds claimed for income tax purposes and BASs primarily by companies and super funds, and does not apply to individuals for income tax purposes.
The ATO said the factors it needs to consider when deciding whether or not to retain a refund include the following:
- likely accuracy of the information provided;
- extent to which the information is consistent with information previously provided;
- impact of retaining the amount on a taxpayer’s financial position;
- complexity of the information that requires verification; and
- likelihood that the information is affected by fraud or evasion, intentional disregard of a taxation law or recklessness as to the operation of a taxation law.
[LTN 125, 2/7]