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Proposed new GST refund rules: The price of overpaying GST
Published on 01 Jun 13 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Exposure draft legislation introduced in February 2013 proposes to introduce a new Div 142 into the A New Tax System (Goods and Services Tax) Act 1999 which will replace s 105-65 of Sch1 to the Taxation Administration Act 1953. The draft legislation is intended to regulate the circumstances in which the Commissioner of Taxation will refund an overpayment of GST. This article considers the operation of the proposed Div 142, whether it meets the stated policy intent and aims, and the practical implications for taxpayers.
The author concludes that, if introduced in its draft form, the new Div 142 is likely to prove more restrictive than the present s 105-65 when suppliers who consider themselves to have borne the cost of overpaid GST attempt to obtain refunds. The risk is that any overpayment of GST will not be refunded.
Author profile
Matthew Strauch CTA
Matthew Strauch, CTA, is a Tax Partner at PwC and leads its National Indirect Taxes practice, with over 20 years’ experience in advising on indirect taxes in both Australia and the UK. Matt advises in all areas of Australian GST with a specific focus on the financial services and advising on M&A and transactions. He also regularly advises clients on GST governance, technology and operations and has significant experience in assisting clients in relation to ATO reviews and audits and in controversy matters. - Current at 27 July 2023
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