ASFA on Tue 18.9.2012, released its submission to Treasury on the draft legislation proposing to amend the GST Act and the TAA relating to refunding of excess GST. ASFA agreed the law surrounding GST refunds required clarification, but considered the draft legislation in its current form was “overly restrictive and significantly reduces the ability of taxpayers to obtain refunds for overpaid GST”. ASFA said it was also concerned that the proposed rules “appear to overreach the stated policy aims and appear to be at odds with general concepts of equity and fairness and contrary to the Commissioner’s current practice in dealing with refunds and use of his discretion”. ASFA was of the view the proposed new law would “adversely affect superannuation funds and potentially other taxpayers”.
ASFA recommended that the Commissioner be given a discretion to pay refunds where that outcome is appropriate eg where a taxpayer does not satisfy the requirements of the proposed Div 36, but there is no windfall gain to the taxpayer. The submission (dated 14 September 2012) is available on the ASFA website.
[LTN 181, 18/9]