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.