The ATO explained on its website that it aims to
“improve the certainty of [its] advice and guidance
by using more real world examples”.
It also announced that it will increase certainty by
publishing more of its guidance in a form by which
it is legally bound.
“For example, we will convert specific ATO
interpretive decisions into forms of legally binding
advice,” said the ATO. “Complementing this process,
we will revise our policies on levels of protection,
our commitment statements, and introduce a
maintenance program to keep our guidance current and
up to date with ongoing changes.”
Mr Butler explained that some rulings, such as TR
2013/5, which ruled that if a trustee underpaid the
minimum pension payment a pension would cease, took
years to become a ruling. “It’s a very substantial
ruling and still the industry is not happy with that
ruling,” he said.
He also referred to TR 2004/D25, which he said has
never been finalised.
“That’s a draft that’s never been completed, but
it’s been an important ruling for tax practice for many
years and people still refer to that ruling,” he said.
“The other point to that is at times these rulings come
out with a lack of consultation, so more consultation
would be appropriate on a number of things. The ATO is
changing its culture to get more material out more
quickly, in more practical areas and also gearing up the
website to deliver that information in a more timely
manner.”
AMP SMSF’s head of policy, technical and educational
services, Peter Burgess, told SMSF Adviser that “any
move to speed up the process of tax rulings is
beneficial to the industry” and that he was therefore
supportive of these moves proposed by the ATO.
“I think that’s a positive move in that it should
result in consistency to the extent that we don’t have
it at the moment; I think centralising these types of
arrangements would result in consistent rulings being
issued in the future,” he said.
Source::
SMSFAdviser , dated 04/08/2015. |