NO.098

REVIEW OF ASPECTS OF INCOME TAX SELF-ASSESSMENT

Today I am announcing the Government’s decision to review aspects of the

income tax self-assessment system.

The review of the self-assessment system will examine whether the right

balance has been struck between protecting the rights of individual taxpayers

and protecting the revenue for the benefit of the whole Australian community.

The review will seek to identify whether there are refinements to the present

arrangements that would reduce the level of uncertainty for taxpayers, reduce

compliance costs and enhance the timeliness of ATO audits and amendments,

while preserving the capacity of the ATO to collect legitimate income tax

liabilities. The review will consider the self-assessment of income tax returns,

especially:

• protection for taxpayers from unreasonable delays in enforcing the tax

  law;

• the statutory timeframes for amending assessments;
• the length of tax audits;
• aspects of the operation of the general interest charge;
• the level of reliance taxpayers can and should be able to place on taxation

  rulings and other forms of ATO advice; and

• the circumstances in which the ATO should undertake earlier examination

  of tax returns.

The review, to be conducted by the Department of the Treasury, will involve

extensive public consultation with stakeholders and interested parties. An

initial round of consultation will aid the Treasury in developing a discussion

paper, which will contain a range of issues and options for public comment

early next year. Following this broad consultation, Treasury will report to

Government in mid-2004, including an assessment of the benefits of any proposed

improvements against their implications for tax administration and revenue.

CANBERRA

24 November 2003

Contact: David Alexander

02 6277 7340