Inspector-General of Taxation: review of the potential revenue bias of ATO in private binding rulings involving large complex matters

The 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 (the Tax Office).

The Inspector-General found no evidence of undue revenue bias in
PBRs. However, he did find that the perceptions of undue revenue bias
by the Tax Office are widespread.

The Inspector-General has 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 agrees, in part or  wholly, to all of the recommendations contained in the report.

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