06 Jun 088 Amendment period for trustees
On 22 August 2007 the Government announced the Review of Unlimited Amendment Periods in the Income Tax Laws and released a Treasury discussion paper. The paper examines those provisions in the tax law that allow an indefinite time for the Commissioner of Taxation to amend taxpayers’ assessments to ensure the correct amount of tax has been paid. In the case of trustees, a legislative solution has been proposed to only allow the Commissioner to raise an assessment within four years from the later of the due date for lodgement of the return or the actual lodgement of the return. This would provide an amendment period for trustees who had not received an assessment.
The ATO has advised that until this legislative solution is implemented the ATO will alter its administrative practices to only allow the Commissioner to issue an assessment to a trustee, within 4 years from the later of the due date for lodgement of the return or the actual lodgement of the return. Income years affected: Income year ended 30 June 2005 (or approved substituted period) and later income years.
For a copy of the ATO advice, go here