• How does the current law compare with the previous law?

    Current law

    (Section 8AAZLGA and related provisions)

    Previous law

    The Commissioner is required to pay a refund that a taxpayer is entitled to under a tax law within the time it takes to undertake the necessary administrative steps to process the taxpayer's return and make the payment.

    However, the Commissioner may retain an amount if it would be reasonable to require verification of information relating to a refund amount provided by the taxpayer.

    The Commissioner is required to pay a refund that a taxpayer is entitled to under a tax law within the time it takes to undertake the necessary administrative steps to process the taxpayer's return and make the payment.

    There is no legislative provision that allows the Commissioner to retain a refund to check the validity of the claim, even if the Commissioner suspects it might be incorrect

    The Commissioner is required to notify the taxpayer when we retain an amount under the provision.

    No equivalent.

    Taxpayers may object under Part IVC of the TAA against a decision of the Commissioner to retain a refund if, within a set period of time, the Commissioner has not either:

    • refunded the amount
    • amended the taxpayer's assessment
    • made or amended an assessment relating to the amount under Division 105 in Schedule 1 to the TAA.

    A decision by the Commissioner to retain an amount is not exempt from judicial review.

    No equivalent.

      Last modified: 29 Jan 2013QC 28291