The Tax Office has provided an update on its progress in upgrading to a new income tax processing system. They have advised that data has moved from its current system into the new system ahead of schedule and that “all other aspects of the deployment are on track”.
However, the Tax Office warns that as it tests the new system, it will progressively build up processing to normal levels, but it cannot predict exactly how long this will take. Therefore, it may take longer to process returns and to issue refunds, if entitled. The Tax Office is “hoping to have the new system up and running from mid February 2010″, but warns that the taxpayer information that the ATO enquiry staff and portal users can access may not be fully up-to-date until processing returns to normal levels.
Tax Office to pay interest for late refunds
The Tax Office says that if it takes more than 30 days after an income tax return is lodged to issue a notice of assessment and that assessment entitles the taxpayer to a refund of tax, the Tax Office will pay interest on the refund amount. If a taxpayer lodges a tax return without all the required information, the 30-day period starts from the date the Tax Office receives all the information. Where such interest is payable, the taxpayer does not need to ask for it – the Tax Office said it will automatically pay it or apply it to any debt on the taxpayer’s account.
This article appeared in Thomson Reuters Latest Tax News (29th January 2010). With tax fast-moving and ever changing – EVERY DAY, practitioners rely on Thomson Reuters daily Latest Tax News for quick, accurate, comprehensive information – no compromises. When you need to know what’s new in tax and related news every day, there’s only one place to look – LTN. To find out more, click here
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