28 Jul 1111 Tax administration: protection from administrative penalties and interest charges - TD 2011/19
On 27 July 2011, the ATO issued final Taxation Determination TD 2011/19 entitled "Tax administration: what is a general administrative practice for the purposes of protection from administrative penalties and interest charges?" It was previously released in draft form as TD 2011/D4.
The Taxation Determination states:
"A general administrative practice is a practice which is applied by the Commissioner generally as a matter of administration. It consists of the habitual or customary, that is repeated, adoption of a view in multiple cases.... It is the practice of the Commissioner, not taxpayers, that is relevant. Nevertheless, in the context of self-assessment, a general administrative practice would be established where:
- a widespread practice is adopted by taxpayers;
- the practice is identified and specifically considered by the ATO at a senior level or in a co-ordinated fashion (as opposed to isolated decisions being made in separate cases); and
- the ATO habitually or customarily accepts the practice, such as by deciding not to contradict or challenge the practice."