19 Dec 088 On GIC impositionMEMBER 1 writes:
"This old chestnut raises its ugly head again. Fellow readers, we have been reviewing several clients’ integrated accounts where the balance of the ICA has been in credit - i.e. ATO owes our client excess funds. To our surprise we note that ATO has calculated and charged general interest charge (GIC) on the credit balance!!
It is no wonder that the government can hand out $10 billion for a Xmas splurge and guarantee bank deposits when they charge interest like this.
Not happy Michael!!! Now we have to object to get a reversal. Does anyone at the ATO look at the garbage they are producing or is it left to the tax agents to identify and correct?
Perhaps Ken Henry can stop looking at wombats in the bush and turn his attention to the ATO?"