*Refunding excess GST – further draft of Division 36 released for retrospective effect back to 17 Aug 2012 [43]
The Assistant Treasurer on Tue 26.2.2013, released draft legislation for a second round of public consultation regarding the circumstances where the Commissioner will refund an overpayment of GST.
The draft legislation seeks to clarify the circumstances in which the restriction on GST refunds applies to overpayments of GST and allows taxpayers to self-assess their entitlement to a GST refund by reference to ascertainable criteria. It also aims to address a gap in the existing law relating to refunds associated with miscalculations of GST payable on a supply.
Mr Bradbury said that first consultation highlighted a number of concerns with the draft legislation, including:
- the perceived inability to obtain a refund of overpaid GST would encourage taxpayers to shy away from adopting a conservative approach to their GST obligations;
- a concern that rights to object to an assessment of GST would be removed as the relevant assessment would not be excessive as s 36-5 would deem the GST to have always been payable;
- the restriction on refunds would override the operation of the adjustment provisions resulting in businesses not being able to get a refund in their dealings with other businesses;
- the Commissioner should be able to retain his discretion to pay refunds where appropriate eg where a taxpayer does not satisfy the requirements of Division 36 but there is no windfall gain to the taxpayer.
Copies of these submissions are on the Treasury website.
DATE OF EFFECT: The amendments would apply in relation to working out net amounts for tax periods commencing on or after 17 August 2012.
COMMENTS are due by 26 March 2013.
[LTN 38, 26/2/13]