ATO Interpretative Decision
ATO ID 2003/881 (Withdrawn)
Excise
Diesel Fuel Rebate Scheme: Amendment of diesel fuel rebate claimsFOI status: may be released
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This ATO ID is withdrawn from the database because it contains a view in respect of the diesel fuel rebate provisions of the Excise Act 1901 and or the Customs Act 1901 that were repealed with effect from 1 July 2003. Despite its withdrawal from the database, this ATO ID continues to be a precedential view in respect of decisions for fuel purchased before 1 July 2003.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Under section 78AE of the Excise Act 1901 or section 164AD of the Customs Act 1901, may the Commissioner amend a diesel fuel rebate assessment in relation to a purchase of fuel where the client has already claimed a rebate in respect of a portion of the fuel purchase under one category and now wishes to claim another portion of the same fuel purchase under a different category?
Decision
Yes. The Commissioner may amend a diesel fuel rebate assessment in relation to a purchase of fuel where the client has already claimed a rebate in respect of a portion of the fuel purchase under one category and now wishes to claim another portion of the same fuel purchase under a different category. However, the Commissioner may only amend an assessment within five years of the client's original application.
Facts
A client has lodged diesel fuel rebate claims in relation to diesel fuel they have purchased. They have only claimed the diesel fuel rebate for that portion of diesel fuel purchased that was eligible for a diesel fuel rebate under one category of rebate.
The client has become aware that they are entitled to claim a rebate in respect of an additional portion of the same fuel purchase under a different category.
The client wishes to amend their diesel fuel rebate assessments in order to claim a rebate in respect of this additional portion.
Reasons for Decision
The following reasons are based on the legislation contained in the Excise Act. The Customs Act contains corresponding provisions, so the rationale and conclusions expressed in regard to the Excise Act are equally applicable to the Customs Act.
Under subsection 78A(1) of the Excise Act, a person is entitled to a diesel fuel rebate for fuel they purchase for use in eligible activities.
Under subsection 78A(4A) of the Excise Act, rebate on a diesel fuel rebate application is only payable in respect of diesel fuel purchased within three years before the application is received. The diesel fuel rebate application can relate to any purchases within this 3 year period. It does not relate to any specific claim period.
Under subsection 78A(4B) of the Excise Act, the Commissioner must give a written notice of assessment to a person who has applied for and is to be paid a rebate.
Subsections 78AE of the Excise Act allows the Commissioner, in certain circumstances, to amend the assessment of a person's rebate entitlement within five years of the client making a diesel fuel rebate application.
It follows that section 78AE of the Excise Act will only apply in relation to diesel fuel purchases for which an application has been lodged and an assessment made by the Commissioner under subsection 78A(4B) of the Excise Act.
One basis for amending an assessment that is specified in section 78AE of the Excise Act is where the applicant notifies a taxation officer in writing of an error or errors in the application before the applicant is notified by the Commissioner of the commencement of an audit.
While many of the grounds for amendment in section 78AE of the Excise Act would appear to be targeted at providing the Commissioner with the opportunity to reduce a client's entitlement, the possibility of correcting underpayments of rebate is clearly envisaged, as evidenced by subsection 78AE(8) of the Excise Act which states that prompt payment must be made to the client where the amended assessment results in them having a greater entitlement as a result of an amendment.
In this case, the client has claimed diesel fuel rebate for a proportion of particular diesel fuel purchases, and provided invoices with the relevant claims. The client has now advised that rebate is payable for another portion of the same fuel under a different rebate category.
An assessment of rebate has previously been made in respect of the diesel fuel purchases and the client has notified the Commissioner of an error in those previous assessments. Accordingly, the Commissioner may amend the assessments, subject to doing so within five years of the lodgement of the original applications.
Date of decision: 9 September 2003
Legislative References:
Excise Act 1901
subsection 78A(1)
subsection 78A(4A)
subsection 78A(4B)
section 78AE
subsection 78AE(5)
subsection 78AE(8)
section 164AD
Keywords
DFRS claims
Diesel fuel rebate scheme
ISSN: 1445-2782
| Date: | Version: | |
| 9 September 2003 | Original statement | |
| You are here | 8 January 2010 | Archived |