Prospective application of change in ATO's view of the law - PS LA 3434 (draft)
07 Mar 2011
The ATO has released for public comment a draft Practice Statement, PS LA 3434, entitled "Matters the Commissioner considers when determining whether the Australian Taxation Office (ATO) view of the law should only be applied prospectively". The purpose of the Practice Statement is to explain the procedures for tax officers to follow and the matters to take into account in determining whether the ATO should not take action to apply its view of the law in past years or periods.
The draft Practice Statement follows the release, in August 2010, of a discussion paper in the form of a draft law administration practice statement. The discussion paper was released to National Tax Liaison Group (NTLG) bodies.
The purpose of the discussion paper was to facilitate consultation between the ATO and the community as part of the process of implementing Recommendations 2 and 4 from the Inspector-General of Taxation's report on the Review into delayed or changed ATO views on significant issues.
A compendium of responses to the issues and comments raised by external bodies and firms during this consultation process is available here