ATO alert courtesy of the Australian Taxation Office;

 

ATO’s administration of the CRP

 

The Inspector-General of Taxation and Taxation Ombudsman (“IGTO”) has issued a report identifying ways for the ATO to improve its administration of the Commissioner’s Remedial Powers (“CRP).

The CRP provides the Commissioner the statutory power to modify the operation of certain taxation law provisions that give rise to unintended or unforeseen outcomes. The lower-than-expected usage of the CRP may be due to the ATO adopting an overly narrow interpretation of the CRP criteria.

It was forecasted (at the time the law was passed) that the CRP would be used up to ten times per annum. However, since its enactment in 2017 (over six years ago), the ATO has received and considered 68 candidates (as at 30 September 2023) for the exercise of the CRP and has exercised the discretion seven times.

 

For more information, visit the IGTO website or contact our office at 9721 1055.

 

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