The ATO on Wed 30.7.2014 released for comment Draft Practice Statement Law Administration PS LA 2011/27 (Matters the Commissioner considers when determining whether the ATO view of the law should only be applied prospectively). The ATO is seeking comments on proposed amendments to the Draft Practice Statement following the Full Federal Court’s decision in Macquarie Bank Limited v FCT [2013] FCAFC 119.
Note the purpose of the Practice Statement remains the same – that is, the Practice Statement explains the procedures for ATO personnel to follow and the matters to take into account in determining whether the ATO should not take action to apply its view of the law in past years or periods.
Among other things, the ATO proposes to amend the Practice Statement to make it clearer that any assessment (including an amended assessment) of a taxpayer’s liability must be based on the law as the ATO understands it to be having regard to any relevant case law, and not on any other basis.
The Draft Practice Statement also states that in any compliance process, a decision that it is appropriate to take action to apply the ATO view of the law only on a prospective basis may be made at any time before issuing an assessment (including an amended assessment).
Comments are due by 28 August 2014 – ATO contact: Helen Kelly; Tel: (07) 3213 5482; Fax: (07) 3119 9847; Email: helen.kelly@ato.gov.au.
[LTN 145, 30/7/14]