Report Finds No Bias In ATO Private Binding Rulings

by Mary Swire, Tax-News.com, Hong Kong

29 February 2008

The Australian government has released the Inspector-General of Taxation’s report on the review of the potential revenue bias in private binding rulings involving large complex matters.

The review looked at whether there is a ‘pro-revenue’ bias evident in private binding rulings (PBRs) issued by the Australian Taxation Office.

While the Inspector-General found no evidence of undue revenue bias in PBRs, the report concluded that the perceptions of undue revenue bias by the Tax Office are widespread.

The Inspector-General has therefore recommended that the Tax Office should act to reduce the widespread perceptions of revenue bias among large business PBR applicants by: increasing transparency, improving communication, and more clearly demonstrating objectivity; clarifying and adhering to the processes and protocols that govern inter-agency interactions; and further reducing delays in large business PBR processes.

The Tax Office has said that it agrees, in part or wholly, with all of the recommendations contained in the report.

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