If you realise that there is a mistake on your tax return, you should consider whether it would be appropriate to request an amendment to correct it. As time limits apply, you should do this as soon as possible.
Objections
If you disagree with certain Tax Office decisions, the law gives you the right to object and have the decision reviewed. Decisions you can object against include assessments, amended assessments, and some private rulings. You should consider lodging an objection if:
- you disagree with an assessment or decision you have received from the ATO
- there is a dispute over how the ATO has interpreted the law, or
- you are uncertain about your interpretation of the law.
When the ATO gives you a decision, they explain how you can get the decision reviewed and tell you the time limits that apply in requesting a review.
Reviews are carried out by an officer who did not make the original decision. The review will reconsider the facts, law and policy aspects of that decision.
Before you object
If you have questions, or disagree with the ATO’s decision, you should contact the ATO to discuss the decision before lodging an objection. Many misunderstandings can be resolved by simply talking to the ATO.
You can object against…
You can object against certain Tax Office decisions. Some of the decisions you can object against include:
- income tax assessments and amended assessments
- fringe benefits tax assessments and amended assessments
- private rulings about income tax
- private rulings about fringe benefits tax and fuel tax credits
- administrative penalty assessments for tax shortfall
- decisions not to remit an administrative penalty if the penalty is more than $220 after the decision has been made
- goods and services tax, wine equalisation tax, fuel tax credit and luxury car tax assessments
- excess contributions tax assessments
- superannuation contributions surcharge assessments
- termination payments surcharge assessments
- superannuation guarantee charge assessments
- decisions not to remit an administrative penalty
- reviewable goods and services tax decisions
- reviewable Australian business number decisions.
You cannot object against…
You cannot object against some Tax Office decisions. Some of the decisions that you cannot object against include:
- general interest charge
- late payment penalty
- shortfall interest charge (where the unremitted amount is equal to or less than 20% of the tax shortfall)
- a private ruling on goods and services tax, luxury car tax or wine equalisation tax – you can ask the ATO to make an indirect tax assessment and then object against that assessment
- a private ruling where an assessment has issued covering the private ruling period – you may object against the assessment
- administratively binding advice or advice about proposed changes to tax laws
- a decision not to remit an administrative penalty if the penalty is $220 or less after the decision has been made.
- If you cannot object against the ATO’s decision, the ATO can still talk to you about your issues and answer your questions. If you ask, in most cases they will review the decision consistent with good administrative practice.
You may also be able to get the decision reviewed by a court.
What happens after you lodge your objection?
Within 14 days of receiving your objection, the ATO will:
- review your objection and, if necessary, contact you or your representative to discuss it
- request further information, if required, to allow them to make a decision
- advise you if your objection will take longer than usual to decide (particularly where the objection raises complex matters) and negotiate a new due date with you for them to make the objection decision.
Unless the ATO has negotiated a completion date with you, they aim to make a decision on your objection (after receiving all necessary information) within:
- 28 days for private rulings on income tax or fringe benefits tax
- 56 days for all other objections.
By promptly responding to any requests from the ATO, you can help ensure that any delays will be minimised.
When the ATO makes their decision on your objection, they will review the facts and evidence provided by you and may decide to:
- allow your objection in full
- allow your objection in part
- disallow your objection.
Once the ATO has made their decision, they will generally send you:
- a notice of decision that includes the reasons for their decision
- information on how to seek an external review if you are dissatisfied with their decision
- information on how to pay any outstanding amount.
If the ATO has allowed your objection in full or in part, they will amend their original decision.
When considering an objection against a private ruling, the ATO may take additional information into account that they did not consider when making the original ruling. The ATO will tell you what the information is, and give you an opportunity to respond, before they make a decision. Where the new information makes a material difference to the facts of the original scheme or circumstances, the ATO may ask you to apply for a new private ruling. If this occurs, your objection is taken not to have been made, and will not be further considered.
Paying outstanding tax when objecting
As a general principle, the Commissioner expects that all debts will be paid on time, including those subject to an objection.
For more information, see recovering debt that is in dispute.
If an objection is decided in your favour, the ATO will refund to you or credit your account with any amount that you have overpaid. Where an overpayment of tax has been made you may be entitled to interest.
About the Author
Warren Kruger is an Australian Tax Specialist and Advisor.
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Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.
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