Draft Taxation Determination
Income tax: is a refund notice an "assessment" for the purposes of the Income Tax Assessment Act 1936 when a taxpayer has a taxable income above the taxfree threshold but is entitled to franking rebates in excess of the amount of tax otherwise payable and a refund notice issues to refund existing PAYE credits to the taxpayer?
Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 93/156.
FOI status:draft only - for comment
|Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.|
2. No tax is payable under the refund notice because the taxpayer's rebate entitlements (under section 160AQU) exceed the tax which would otherwise be payable by the taxpayer on the taxable income. Such a refund notice does not impose any tax liability (Case W69 89 ATC 618 at 626; AAT Case 5237 (1988-89) 20 ATR 3806 at 3814). It is not an assessment for the purposes of the Act.
4. If, at a later date, the Commissioner issues an assessment to increase the taxpayer's taxable income, that assessment would be an original assessment and not an amended assessment. It would not be subject to the time limitations contained in section 170.
A taxpayer's return of income for the year ended 30 June 1992 discloses the following:
Salary & wages (PAYE deductions of $150.00)
Commissioner of Taxation