Excise and other taxes

We raised excise revenue, which includes wine equalisation tax, liabilities of $26.9 million and collected $24.1 million.

For excise transfers, predominantly fuel tax credits, our compliance activities resulted in adjustments in favour of taxpayers of $49.8 million and in our favour of $36.3 million. On adjustments in our favour, we collected $18.7 million.

The introduction of plain-packaging legislation for tobacco products required us to undertake our largest ever assurance process around the refund of excise duty and remission claims for excisable and customable tobacco. As a result, tobacco products not complying with the legislative requirements had to be withdrawn from the Australian market by 1 December 2012. Ultimately, product equating to around $366 million in duty was destroyed. Feedback from the tobacco industry about our management of this assurance process was positive.

Our wine equalisation tax compliance activities included ensuring claims for the producer rebate were correct. As a result, 27 cases were referred for audit with a number of those either still in progress or finalised with inappropriate claims amended. We referred the activities of six potential promoters of tax avoidance schemes for further investigation.

The luxury car tax gap has remained steady over the past few years, providing assurance that compliance levels have been maintained.

Incorrect or ineligible fuel tax credit claims continue to be made as a result of poor record keeping or taxpayers misunderstanding their entitlements. We supported fuel tax credit clients with online information, tools and calculators to help them comply with the new clean-energy measures. We also continued our industry-based forums and client-relationship-management activities to assist large businesses.

    Last modified: 02 Mar 2015QC 42710