20 Mar 09 On tax refundsMEMBER 3 writes:
"Didn’t I read somewhere that the ATO were going to stop their practice of seizing income tax refunds and applying the credit to offset integrated client account debts not yet due?
I’ve just had a case where a company’s 2008 income tax refund that issued on 3 March 2009 has been applied against the debt arising from the February 2009 instalment activity statement, not due for payment until 23 March 2009. Effectively the Commissioner has received his money three weeks early and I have had to explain to the client where the balance of their expected refund has gone.
At a time when cash flow is critical for every business, and the rhetoric from the Commissioner is that he is here to help - why does the ATO continue this annoying habit?"