TPB: Draft guidance on breach reporting obligations
The Tax Practitioners Board (TPB) has released draft guidance on breach reporting obligations which apply to registered tax practitioners from 1 July 2024. The draft guidance is aimed at assisting tax practitioners with awareness, education and compliance, in reporting breaches to the TPB or relevant professional associations. The TPB said breach reporting obligations have been strengthened to support the majority of tax practitioners who voluntarily comply with their obligations and that breach reports will also provide timely data and intelligence to support services and targeted regulation. Comments are due 28 May 2024.
AAT to rehear issue re assessability of foreign income
In PQBZ and FCT [2023] AATA 2984, the AAT ruled that the taxpayer, who operated a family business in PNG, was an Australian resident (and not a foreign resident as he claimed). However, the taxpayer was successful in showing that default assessments issued to him were excessive. The Federal Court has now, by consent of the parties, allowed the Commissioner’s appeal and dismissed the taxpayer’s cross-appeal from that decision. However, it has remitted the matter to the AAT for rehearing to allow the taxpayer to adduce further evidence in respect of the Commissioner’s successful claim that undeclared amounts in foreign bank accounts were assessable to the taxpayer. It has been remitted essentially on the basis that when it was argued before the AAT, the taxpayer did so with the perception that he was a foreign resident and that, in the interest of procedural fairness, he should now be allowed to argue it on the basis of being a resident for tax purposes. In arriving at its decision, the AAT stressed that allowing the taxpayer to adduce further evidence would not amount to giving him a “second bite at the cherry”. Rather, it would simply provide the AAT with all the relevant evidence now available – and with the intention to ascertain the taxpayer’s true income. (FCT v Tan [2024] FCA 406, 4 April 2024.)
IGTO interim report on bank account identity fraud
The Inspector General of Taxation and Tax Ombudsman (IGTO) has released its interim report into own-initiated “TaxID fraud investigation” in relation to bank account integrity and ID fraud. The report said that preventing, detecting and responding to TaxID fraud is important to maintain the integrity of the tax system and avoid proliferation, which impacts and erodes the Revenue. The IGTO has made 13 recommendations to the ATO in relation to this matter and has called for the ATO to improve its administration of taxpayer banking details and refunds to combat TaxID fraud.
OECD: Tax Inspectors Without Borders Annual Report 2024
The OECD has released the “Tax Inspectors Without Borders (TIWB) Annual Report 2024”. The OECD said it shows the impact of this initiative’s work over the past nine years, resulting in the generation of USD 2.30 billion in additional tax collections and USD 6.05 billion in additional tax assessments by developing countries worldwide. The OECD says that these efforts have also significantly contributed to advancing the Sustainable Development Goals (SDGs) by increasing domestic resource mobilisation.
