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Broadcast


22 July 2004

 

Four year time limit for GST refunds

Today, the Commissioner of Taxation reminded businesses that the four year time limit for claiming a refund of GST, luxury car tax or wine tax credit is about to become effective (under Section 36 of the Taxation Administration Act 1953). The four year limit also applies to amounts of indirect tax overpaid on importations.

What you need to know

Generally, a taxpayer must claim an outstanding GST refund or notify the Tax Office of their entitlement to claim a refund, within four years of the end of the tax period to which the entitlement relates.

- Taxpayers who lodged a monthly activity statement for July 2000 have until 31 July 2004 to claim the refund or notify the Tax Office of their entitlement.

- Taxpayers who lodged a quarterly activity statement for the September quarter 2000 have until 30 September 2004.

The taxpayer can within the four year time limit:

- make their claim in a current activity statement (eg if they can use the concessions available under the Correcting GST mistakes fact sheet)

- lodge a revised activity statement, or

- notify the Commissioner of their entitlement to make a claim at a later date.

Only a small number of clients are expected to be effected by the four year time limit.

The time limit will progressively take effect for all subsequent tax periods.

Where taxpayers have a valid tax invoice and have not claimed the GST credit for that purchase, they may still claim the GST credit in the current or any later tax period.

There are some other circumstances when the 4 year time limit may not apply. See the Time limit on GST refunds fact sheet.

What you may need to do

Identify clients that have an entitlement and that may immediately be affected by the four year time limit (particularly those that will either need to revise activity statements or notify the Commissioner of an entitlement before 31 July 2004). For each of these you should:

- make a claim in their current activity statement (eg if they can use the concessions available under the Correcting GST mistakes fact sheet)

- lodge a revised activity statement, or

- notify the Commissioner of their entitlement to make a claim at a later date.

Alert your clients that there is a four year time limit. You and your clients will need to consider this time limit when claiming a refund of GST, luxury car tax or wine tax credit and amounts of indirect tax overpaid on importations.

Important information about notification

Where your client has a valid entitlement, you can notify us by completing and returning the Notification of entitlement to GST refund form.

You can also write to us, but will need to include the following information:

- entity name per Australian Business Register (ABR)

- Australian business number (ABN)

- tax period(s) relating to GST refund

expected amount of refund (if known)

- circumstances which created the GST refund entitlement, for example, a supply was treated as taxable but was GST free.

The Tax Office will accept notification on behalf of multiple clients, where the above information is provided. However, the Tax Office will not accept protective blanket notification for all your clients.

A temporary ‘notification by phone’ arrangement has been put in place to assist you if you need to make an immediate notification on behalf of your clients (apart from for multiple clients). Tax agents can call 13 72 86.

Where to send the notification(s)

Send the notification to the Tax Office by:

Fax to: 1300 139 031 or
Mail to: P O Box 9935 in your capital city

Further information is available at ato.gov.au or by phoning 13  72  86 Fast Key Code 2 3.

Neil Mann
Deputy Commissioner GST

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