Refund integrity - discretion to retain refunds

This measure amends the Taxation Administration Act 1953 (TAA) to allow the Commissioner of Taxation to retain refunds for verification prior to payment.

The amendment applies to:

• refunds claimed on a business activity statement
• refunds claimed by full self-assessment taxpayers for income tax purposes (primarily companies and super funds).

Certain threshold tests must be met before this discretion can be exercised.

This amendment does not apply to individuals for income tax purposes and normal processes still apply.

Media release

Refer to media release no 008/2012, Government to amend law to allow ATO to hold refunds pending verification checks, issued on 15 February 2012 by the Assistant Treasurer.

Legislation and supporting material

The following legislation received royal assent on 27 June:

• Tax and Superannuation Laws Amendment (2012 Measures No.1) Act 2012
• Explanatory Memorandum.

More information Refer to Exposure draft legislation - Commissioner's ability to retain refunds pending verification checks.