| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011751027292
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Request to opt out of Option 3
Question:
Can you change your Goods and Services Tax (GST) reporting option from reporting annually and paying by instalments (Option 3) to reporting and paying quarterly (Option 1) during the current financial year?
Answers:
No. You cannot change your reporting option from Option 3 to Option 1 during the current financial year. The Commissioner of Taxation, (Commissioner), has no discretion to allow a taxpayer to withdraw from the GST instalment system and use a different reporting option during the current financial year.
Relevant facts:
You are registered for Goods and Services Tax (GST).
You have elected to use the instalment option for payment of your GST obligations in your September 2010 quarterly activity statement, you have also lodged your December 2010 BAS.
Your tax agent has written to the tax office and requested that you opt out of option 3 reporting. The letter was received by the tax office on 11 March 2011.
Your tax agent advised that you lodged the September 2010 and December 2010 BAS without realising the consequences.
Reasons for decision
Detailed reasoning
An entity that meets the eligibility requirements of section 162-5 of the A New Tax System (Goods and Services) Tax Act 1999 (GST Act) is able to elect to pay their GST by instalments (Option 3). You have made such an election in your September 2007 quarterly activity statement which has been accepted by the Commissioner.
Under subsection 162-30(2) of the GST Act, you are able to revoke your Option 3 election at any time. However, the date of effect of the revocation will take effect from the start of the current financial year only where it is made on or before 28 October of that year. Otherwise, the date of effect of the revocation will be the start of the next financial year if the revocation is made after the 28 October.
In your case, you have not notified the Commissioner that you wanted to revoke your Option 3 election on or before 28 October 2010. The written request submitted by your tax agent to the Australian Taxation Office was dated 11 March 2011.
Your request to revoke your election during this financial year cannot be granted as Division 162 of the GST Act does not give the Commissioner any discretionary powers, even for reasons of hardship, to allow a revocation made after 28 October in the current year to take effect from a point in time other than the start of the next financial year.
You will need to contact the Australian Taxation Office prior to 28 October 2011 to opt out of Option 3 for the financial year 1 July 2011 - 31 June 2012.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
