The ATO has released a Decision Impact Statement on the AAT decision in AAT Case [2013] AATA 891, Re Swanbat Pty Ltd and FCT. In that case, the AAT had set aside the Commissioner’s amended assessment in relation to a BAS for the period 1 April 2008 to 30 June 2008 and held that the taxpayer’s net amount for the quarter was zero. It did so on the basis that the amended assessment was excessive.
Consistent with the Tribunal’s decision, the ATO said the Commissioner accepts that in cases where he mistakenly refunds an amount to a taxpayer outside of the 4-year period specified in s 105-55 of Sch 1 to the TAA, he should seek to recover the incorrectly paid refund as an administrative overpayment under s 8AAZN of the TAA.
Also consistent with the Tribunal’s decision, the ATO said it is accepted that in the particular circumstances where a refund is incorrectly paid outside the 4-year period in s 105-55, it is not appropriate for the Commissioner to seek to recover the incorrectly paid refund by making an assessment of the taxpayer’s net amount that includes GST on sales that are not taxable and/or that excludes input tax credit entitlements for acquisitions or importations that are creditable.
[LTN 103, 30/5/14]