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20 Jan 09 Decision Impact Statements - Smith & De Angelis

The ATO has published a Decision Impact Statement in relation to the District Court of New South Wales decision in FCT v Smith [2008] NSWDC 219. The case concerned, amongst other issues, whether the general interest charge (GIC) is payable on administrative overpayments where the ATO has not issued a notice to the taxpayer under s 8AAZN of the Taxation Administration Act 1953 (TAA).

The Court held, contrary to the views of Shaw J in Deputy Commissioner of Taxation v De-Angelis (2008) SADC 103 that s 8AAZN(2) cannot be overridden by the general GIC provisions contained in the RBA provisions, that the legislation entitles the Commissioner to allocate the administrative overpayment to the RBA but not the GIC. The GIC on the RBA then becomes payable under s 8AAZF not s 8AAZN(2). The ATO accepts the Court's decision. The ATO says that it will continue to allocate administrative overpayments to RBAs, and to calculate GIC on such administrative overpayments from the date of the overpayment where it has been posted to an RBA.

For a copy of the Smith Decision Impact Statement, go here.

The ATO has also published a Decision Impact Statement in relation to the District Court of South Australia decision in FCT v De Angelis [2008] SADC 103. The case concerned the same issue as Smith but came to the contrary conclusion. The Commissioner disagrees with the findings in De Angelis and, as indicated above, considers the approach is Smith to be the better approach.

For a copy of the De Angelis Decision Impact Statement, go here.

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