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Monday, August 17, 2015

The Australian Tax Office (ATO) Practice Statement

Tax benefits/avoidance & GAAR

Australia's effort to change the international tax arena. This practice statement is a draft for consultation purposes only.  Interested parties should submit comments by 25 September.

When the final practice statement issues, it will have the following preamble: This practice statement is an internal ATO document, and is an instruction to ATO staff.

Taxpayers can rely on this practice statement to provide them with protection from interest and penalties in the following way.

If a statement turns out to be incorrect and taxpayers underpay their tax as a result, they will not have to pay a penalty. Nor will they have to pay interest on the underpayment provided they reasonably relied on this practice statement in good faith.

However, even if they don't have to pay a penalty or interest, taxpayers will have to pay the correct amount of tax provided the time limits under the law allow it.

This practice statement is designed to assist Tax officers who are contemplating the application of Part IVA or other GAARs to an arrangement, including in a private ruling, Public Ruling (including a Product Ruling or a Class Ruling) or other document setting out the ATO view.

1 comment:

  1. paying your taxes in the right way and on time can lessen some stress over your finances and get away from trouble over government tax office.