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ATO Response to Running Balance Account System - no solutions

Publication date: 01 Jun 01 | Source: THE TAX INSTITUTE

The ATO policy document released yesterday fails to ease the burden on taxpayers who could be charged interest or pay twice because they were unaware a counterbalance had taken place.

Although the document has been noted, it does not go far enough in addressing all RBA and other related issues. The document outlines limited circumstances, which do not provide relief to taxpayers who do not fit into these three specific and narrow scenarios.

President of the Taxation Institute of Australia, Ms Alice McCleary, called on the ATO to release a clear practice statement covering all possible cases and their position.

"A formal document outlining a clear practice statement is the only solution to a persistent problem," said Ms McCleary.

"It is evident the RBA system is a constant frustration for taxpayers and their advisors. We have in the past, and will continue to demand the ATO address their position concerning the RBA system to reduce the complexity surrounding the current tax system."