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Tax Administration (Wk 12) - Coggle Diagram
Tax Administration (Wk 12)
Annual returns
Every person must lodge an annual return
s 161
Due date usually 31 October
Commissioner has power under
ss 162 and 163
to request:
A taxpayer to lodge a return, further or fuller return
Provide information about financial affairs
Annual return also required for FBT
s 68
- due 21 May next year
Lodgement of tax returns much be in an approved form
I for individuals
C for companies
P for partnerships
T for trusts
Once annual return is lodged, a Notice of Assessment issues by the ATO
If taxpayer disagrees with Commissioners assessment, they may object wholly or in part
Assessments
From 1986 a self-assessment system
Tax is due and payable 21 days after the required lodge date or after the NOA
s 5-5(6)
Full self-assessment taxpayers can use PAYG system
s 5-5(4)
Assessment is defined in
s 995-1
and R v DCT; Ex parte Hooper
from 2005 definition amended to include no taxable income or no liability to pay tax
Commissioner is deemed to have made an assessment when full-assessment taxpayers lodge their returns
s 166A
Tentative or provision assessment is not a valid assessment
Commissioner has power under
s 167
to issue a default assessment where a taxpayer has not lodges a return or the commissioner is not satisfied with the return
Asset betterment statement
default assessment under
s 167
often relies upon this
compares taxpayers assets at the start of the year with the end
s 175
- the validity of assessment is not affected merely because any of the provisions have not been complied with
Commissioner is entitled to reply on
s 177
when the taxpayer objects to an assessment
Amendments of assessment
The Commissioner has 2 years from the date of NOA or 4 years for some
Commissioner has unlimited time to amend in the case of fraud or evasion
Taxpayers can apply for amendment before the time limit expires
Shortfall interest charges applied to any tax shortfalls from the date the original liability was payable
General interest charged applies to any unpaid tax from time due