GST ratio method for calculating provisional tax

Clauses 200 and 201

Submission

(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.

Comment

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.

Recommendation

That the submission be declined.