This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
Conditions for using the correction of mistakes arrangements
We have established these arrangements to help you comply with your obligations. However, we are not bound by these arrangements if you misuse them, misrepresent your intentions of fuel use or make unreasonable and unsupportable calculations of your entitlement to fuel tax credits.
Mistakes you can correct
You can only use these arrangements to correct mistakes that are genuine and reasonable. They do not apply in circumstances where we think you are deliberately manipulating your affairs to take advantage of the arrangements. If we think this is the case, you will need to go back and revise each BAS on which an error occurred and the general interest charge will apply from the due dates on those BAS. We may also withdraw the right for you to use these arrangements in the future.
If you establish a regular pattern of correcting mistakes by adjusting your current BAS for amounts that are at the upper end of the correction limits, we may also consider this as an abuse of the arrangements. Where these mistakes are genuine and occur in the normal course of business, you must demonstrate how these mistakes have occurred.
When a mistake should be corrected
Corrections decreasing your fuel tax credit entitlement should be made as soon as possible after the mistake is found, either by making the correction in the next BAS or by requesting a revision of the original BAS in which the mistake occurred. We consider you to be taking advantage of the correction arrangements if you deliberately delay the correction of a mistake that decreases your entitlement to fuel tax credits until the last tax period before the time limit runs out.
What if you are being audited or reviewed?
If you receive advice from us about our intention to conduct a review, you are not able to apply these arrangements from that date until the review has been finalised. Our advice may be in writing or by phone. We will arrange to revise all relevant BAS to correct any errors uncovered in the review, including any voluntary disclosures notified at the start of, or during the course of, the review. Where any previous BAS is corrected, the general interest charge will apply from the due date of that BAS.
If you find errors in a previously lodged BAS after we have notified you of a review, it is in your best interests to voluntarily disclose the errors. If you tell us about your mistake it will be taken into account when we consider the application of a penalty.
If an error is found during your review and it is clear you have made a genuine attempt to comply with your tax obligations, there will be no penalty on the shortfall amount. If the error is within the value and time limits (where applicable) we may allow you to use these arrangements and include the amount in your next BAS. If the error is outside the value or time limits we will revise your fuel tax credit entitlements for the relevant tax period and you will be sent a notice of assessment. The general interest charge may need to be paid on a revision to a BAS for an earlier tax period.