MEMBER 88 writes:
“Re Member 82’s Amendment Request (2012 TaxVine No 11 (5 April 2012)).
An answer to the riddle:
I had a similar experience very shortly after the implementation of the new whizz bang computer system where I had requested an amendment to a company tax return that should have resulted in a refund. The amended assessment duly issued with the revised taxable income, but no change to the tax payable on the taxable income amount. A telephone call was made to the ATO to find out why there was no adjustment to the tax payable and therefore no refund attached. An answer was provided, and whilst I can understand the technical correctness of the answer, it still goes beyond belief that the new computer system would require this approach. The answer was ‘A company is a full self-assessment taxpayer, and therefore when an amendment is requested that adjusts taxable income, the taxpayer should also request amendment to the assessment that is included as part of the tax return’. I wonder if the system would have issued the amended assessment without adjusting tax payable if the amendment was to increase taxable income.”