Edited version of your private ruling

Authorisation Number: 1012525128525

Ruling

Subject: Lodgment of Income Tax Return

Question 1

Are you required to lodge the Business and Professional Items Schedule for 2013 in an electronic format?

Answer

Yes, you are required to lodge the Business and Professional Items Schedule electronically with your income tax return for the 2013 income year.

This ruling applies for the following periods:

01/07/2012 to 30/06/2013

The scheme commences on:

01/07/2012

Relevant facts and circumstances

· You recently received correspondence from the Australian Taxation Office which advised that you will be required to lodge the Business and Professional Items Schedule (BPIS) electronically for the 2013 income year.

· You have advised that you do not have the required infrastructure to lodge your tax return (and your BPIS) electronically as you do not have an internet account, an iphone/smartphone, a home phone line account or personal computer.

· You are unable to obtain the required home infrastructure as you travel frequently for your work and are away from your home base.

· You have also raised concerns regarding data security should you use your work laptop to lodge your income tax return.

· You advised that you are more prone to making mistakes when completing tasks on the computer.

· You advised that you also have concerns re the additional costs that would be incurred if your income tax return was lodged electronically.

· You advised that you also believe you should have the right to choose a lodgement method that is acceptable and on that incurs the most acceptable cost.

· You have requested to lodge your income tax return (and BPIS) in a paper format.

Relevant legislative provisions

Section 161 of the Income Tax Assessment Act 1936

Section 161A of the Income Tax Assessment Act 1936

Reasons for decision

Subsection 161(1) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that;

Every person must, if required by the Commissioner by notice published in the Gazette, give to the Commissioner a return for the year of income within the period specified in the notice.

Section 161A of the ITAA 1936 provides that;

(1) The return must be in the approved form

(2) An approval given by the Commissioner of a form of return may require or permit the return to be given on a specified kind of data processing device, or by way of electronic transmission, in accordance with specified software requirements.

Consequently the income tax return must be lodged in the approved form in accordance with subsection 161A(1) of the ITAA 1936 and the Commissioner can request that the return be lodged in an electronic format in accordance with subsection 161A(2) of the ITAA 1936.

As the Business and Professional Items Schedule (BPIS) forms part of the income tax return, the Commissioner can request that the income tax return (and the BPIS) be lodged in an electronic format (subsection 161A(2) ITAA 1936).

The Australian Taxation Offie is progressively moving to electronic methods to provide instructions and tax return lodgement options for taxpayers with more complex affairs. For this reason, from the 2013 income year onwards, if you are required to complete the BPIS you cannot lodge a paper tax return.

It was noted that some of the content of your private ruling application addressed concerns that cannot be responded through a private ruling (eg, right to choice). If you still feel concerned about these issues you can lodge a complaint. The ATO supports your right to complain and we are committed to treating complaints seriously, dealing with them quickly and learning from them. You can lodge a complaint through various channels identified below;

· Access the Complaints Form on www.ato.gov.au

· Call phone number 1800 199 010

· Call the National Relay Service on 13 36 77 (if you have a hearing, speech or communication impairment)

· Send a fax to 1800 060 063

· Write to PO Box 1271 ALBURY NSW 2640