What factors do we need to take into account in deciding whether to retain an amount?

As far as the information available to us at the time of making the decision reasonably allows, we must consider the following:

  • the likely accuracy of the information in the activity statement or other return (the notified information)
  • the likelihood that the notified information was affected by either
    • fraud or evasion
    • intentional disregard of a tax law
    • recklessness as to the operation of a tax law
  • the impact of retaining the amount on your financial position
  • whether retaining the amount is necessary for the protection of the revenue, including the likelihood that we can recover any of the amount if the notified information is found to be incorrect after we have refunded the amount
  • any complexity involved in verifying the notified information
  • the length of time we have already retained the amount
  • what we have already done to verify the notified information
  • whether we have enough information to make an assessment (including information obtained from making further requests for information)
  • the extent to which the notified information is consistent with information that you previously provided
  • any other relevant matter.

For more details about the above factors, see PS LA 2012/6: Exercise of the Commissioner's discretion under section 8AAZLGA of the Taxation Administration Act 1953 to retain an amount that would otherwise have to be refunded

    Last modified: 29 Jan 2013QC 28291