ATO’s discretion to Retain Refunds – recent changes to the law
The Taxation Administration Act 1953 (TAA 1953) has been amended recently to provide the ATO with discretion to retain certain refunds to undertake integrity checks on claims.
The amendment is outlined in section 8AAZLGA, which received royal assent on Wednesday 27 June 2012 and came into effect on that date.
The amendment applies to:
• Refunds claimed in a business activity statement
• Refunds claimed by full self-assessment taxpayers for income tax purposes (primarily companies and super funds)
This amendment will not apply to individuals for income tax purposes, and current processes still apply.
Certain threshold tests must be met before this discretion can be exercised.
The change is considered a necessary requirement by the ATO because there may be circumstances where the amount claimed in a return or other notification is incorrect due to recklessness or fraud.
If you believe the ATO have unfairly retained your refund or are yet to lodge your company or individual tax return our professional accountants and lawyers at The Quinn Group can assist you. Submit an online enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.