ATO power to modify operation of the law
On 1 May 2015 the Government announced that legislation would be introduced to provide the Tax Commissioner with the power to modify the operation of tax and superannuation laws.
Draft legislation on this proposed change was released by Treasury on 4 December 2015.
The purpose of introducing this new power is to try and avoid situations where unforeseen or unintended outcomes would arise if the laws were applied strictly.
For example, an unintended outcome can arise in connection with scenarios that were not contemplated at the time the relevant provisions were drafted.
This power is only intended to be used by the Commissioner as a last resort (i.e., when all other avenues for correcting the situation have been exhausted) and where there is a negligible impact on revenue.
For more information, please contact our team on 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.