MEDIA RELEASE: Expect faster GST refunds from ATO
Wednesday, 14 December 2011
Small business can now expect faster GST refunds as a
result of changes to ATO (Australian Taxation Office) practices
following a decision in the Full Federal Court between the
Commissioner of Taxation v Multiflex Pty Ltd. The ATO can no longer
hold onto GST refunds beyond a reasonable time for administrative
processing of a refund.
The slow processing of GST refunds as a result of ATO
verification processes can have severe consequences on small
businesses and restrict important cash flow. Small business does
not have the same financial resources as larger organisations to
cushion themselves against delayed refunds.
"Practitioners have long complained about
trying to recoup money owing from the ATO on behalf of clients.
This case is a welcome relief for businesses waiting on refunds to
maintain their working capital requirements," said Andrew Conway,
chief executive officer from the Institute of Public
The ATO had already anticipated an adverse outcome and was
improving its response time on processing GST refunds. The ATO can
no longer hold back a refund for verification purposes but can
issue an amended assessment if it is warranted.
The ATO was not granted Special Leave by the High Court to
have this case reheard. This case represents a major blow to its
administrative practices regarding refunding of GST
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