GST ratio method for calculating provisional tax
Clauses 200 and 201
(Chartered Accountants Australia and New Zealand)
The criteria for using the GST ratio method for calculating provisional tax should be relaxed to allow all taxpayers the option to use this method.
The operational requirements should be simplified.
The remedial amendment is to clarify the circumstances in which a person must stop using the GST ratio method of calculating provisional tax.
The submitter is requesting a relaxation of the current policy settings that allow a person to use the GST ratio method for calculating provisional tax. Officials note that this submission raises issues that would require further analysis as part of the Government’s tax policy work programme.
That the submission be declined.