ATO Practice Statement Law Administration
PS LA 2003/1Petroleum Excise Duty - Reporting for adjustments outside the current reporting period
This document has changed over time. View its history.
|1. What this practice statement is about|
|2. When the administrative arrangements apply|
|3. Accepting an agreement|
|4. The Out of period adjustment report|
|5. Utilising the arrangements|
|This practice statement is an internal ATO document, and is an instruction to ATO staff.
Taxpayers can rely on this practice statement to provide them with protection from interest and penalties in the following way. If a statement turns out to be incorrect and taxpayers underpay their tax as a result, they will not have to pay a penalty. Nor will they have to pay interest on the underpayment provided they reasonably relied on this practice statement in good faith. However, even if they don't have to pay a penalty or interest, taxpayers will have to pay the correct amount of tax provided the time limits under the law allow it.
This Law Administration Practice Statement outlines the arrangements in place to allow petroleum excise payers to make adjustments for over or under payments that have occurred outside of the current reporting period.
1. What this practice statement is about
This practice statement outlines the administrative arrangements in place to allow certain petroleum excise payers to make adjustments on an Excise return for overpayments or underpayments that have occurred outside the current reporting period. These arrangements remove the requirement to seek specific approval for each occasion.
2. When the administrative arrangements apply
- there is minimal impact on the settlement payment for the period
- the client has an accounting system which is compliant with the requirements of the ATO.
The client will also need to confirm:
- that supporting documentation will be maintained and made available to ATO Officers on request.
- that any adjustments that are found to have been incorrectly claimed will be corrected by an adjustment to the next Excise return, and reported on the next Out of period adjustment report. That may involve a set-on for an incorrect refund or drawback claim, or set-off for an incorrect underpayment.
- which method (see section 5) they will use when utilising the arrangement.
3. Accepting an agreement
The advice should inform the client that acceptance of the agreement does not diminish or remove the Commissioner's ability to prosecute, or take any other action.
4. The Out of period adjustment report
|Adjustment Reason Code*||Retr
returns of physical product
errors of fact in relation to bunkers
errors of fact or misconception of law
does not fit into the above
drawbacks for duty paid product being exported
|Date of effect of duty|
|Excise Duty Rate|
|Comments (ie. vessel name for drawbacks)|
|Net Adjustment Result**|
* the adjustment reason code will only be required for each individual circumstance over 12 months old and for specific circumstances on request.
** the amount shown is taken as a credit unless specified with a minus sign to signify a debit.
*** of the person authorised to sign the Excise return
5. Utilising the arrangements
There are two ways in which clients can utilise the arrangements. Under either arrangement an Out of period adjustment report will detail all debit and credit adjustments identified during that period and will be netted off or on the final excise payment.
Adjustments are not made to the quantity for the same product reported in the Excise return
The net total of the Out of period adjustment report will appear in the Less Approved Credit field of the Excise return and will be added or deducted from the Total Excise Payable for that period.
The resultant figure will be the amount to be paid.
Adjustments are made at the line level to the quantity for the same product reported in the Excise Return
The Less Approved Credit field will only contain adjustment amounts relating to product for which there was insufficient quantities of that product concerned delivered during the current period.
|Date of amendment||Part||Comment|
|7 January 2016||All||Updated to new LAPS format and style.
Citations changed due to Excise Regulation 2015 replacing Excise Regulations 1925.
Part 4 amended to provide flexibility regarding the supply of data.
Authorisation and contact officer details updated to reflect changes to structure and accountabilities.
|27 September 2011||Contact details||Updated|
|Paragraphs 1 and 2||Tax Office updated to ATO as per Style Guide recommendations.|
|31 May 2010||Contact details||Updated|
|6 August 2008||Contact details||Updated|
|30 January 2008||Paragraph 3||Clarification that the Out of Period Adjustment Report is due at intervals negotiated between the client and the Excise National Director. References to industry groups removed. Addition of 'electronically' to (c) to clarify the accepted method for receiving the Adjustment Report. Reference to statistical codes and original instruments removed. Phrases added to provide general clarification of the Adjustment Report process.|
|Paragraph 4||References to industry groups removed.|
|Various||Generic or alcohol, tobacco, petroleum excise industry references changed to specific references to petroleum.
References to 'weekly' settlement permission changed to 'periodic' settlement permission.
|Contact details||Authorisation and contact officer details updated to reflect changes to structure and accountabilities.|
Date of Issue: 2 April 2003
Date of Effect: 1 July 2003
File 2003/003426; 1-7JMQAVO