ATO Interpretative Decision

ATO ID 2002/1104 (Withdrawn)

Income Tax

Reasonable benefit limits: determination of an arm's length salary - entitlement to review
FOI status: may be released

This ATO ID is withdrawn from the database because it contains a view in respect of Division 14 of Part III of the Income Tax Assessment Act 1936 and Part 5A of the Income Tax Regulations 1936 (the RBL provisions). The RBL provisions do not apply for the 2007-08 income year and later income years. This ATO ID continues to be a precedential view in respect of decisions for income years up to, and including, the 2006-07 income years.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is the applicant who lodged an objection after 19 May 2000 entitled to a review of arm's length salaries (ALS) that were determined before 19 May 1999?

Decision

No, they are not entitled to any review.

Facts

The taxpayer applied for the determination of an ALS and was issued an ALS determination from the ATO prior to 19 May 1999.

The taxpayer objected to the Commissioner's decision after 19 May 2000.

Reasons for Decision

An ALS determination issued to the taxpayer prior to 19 May 1999.

As the ALS determination was received prior to 19 May 1999, pursuant to subregulation 53FA(3) of the Income Tax Regulations 1936 (ITR 1936) the taxpayer had until 19 May 2000 in which to lodge an objection against the ALS determination issued prior to 19 May 1999.

The Australian Taxation Office has no discretion to allow extra time to object after this date. As the taxpayer's objection was lodged after 19 May 2000, therefore it is invalid and there are no further review or appeal rights.

Date of decision: 20 August 2002

Year of income: Year ended 30 June 1985

Legislative References:
Income Tax Regulations 1936
subregulation 53FA(3)

Keywords
Reasonable benefit limits
Transitional RBLs
Highest average salary

Business Line: Superannuation

Date of publication: 30 November 2002

ISSN: 1445-2782

history

	Date:	Version:
	20 August 2002	Original statement
You are here	23 November 2007	Archived

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