ATO Questioning An Old Reimbursement

Discussion in 'Accounting & Tax' started by N_J_H, 13th Mar, 2020.

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  1. N_J_H

    N_J_H New Member

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    I have found that I overpaid tax a number of years ago (8), but only recently was able to receive the evidence of the overpayment from my old employer recently. I have submitted it to the ATO but they are asking why it took so long?

    Am I right to think that they have no right to ask this question? The fact is I overpaid tax and ATO only has the authority to tax in accordance with the law?

    What is the best way to respond. Grateful professional views.
     
  2. shorty

    shorty Well-Known Member

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    Nicely
     
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  3. jprops

    jprops Well-Known Member

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    Yep, politely lay it on the old employer... as you said "only recently was able to receive the evidence of the over-payment from my old employer recently"
     
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Overpayments and underpayments of tax may both be problematic if the relevant years lodgement cannot be amended. Tax law limits the rights of the Commissioner and the taxpayer to specific time limits unless fraud / evasion are involved. A overpayment of tax is not going to meet this test.

    You may be able to seek the Commissioners leave if there are compelling grounds arising from somethjing like a court case but generally the ATO will reply and say - Bad luck. If its more than 4 years since assessed you may be out of time and you may have no recourse. If its between 2 and 4 years since assessed you may need tax advice. Quickly.

    The issue of how tax was overpaid need to be explored. There could be recourse against the employer for example and you may have 6 years to seek Fair Work action if a employer made a mistake in the PAYG summary preparation for example.

    Most laws have statutory limits which bind parties whether it right or wrong.
     
    Last edited: 13th Mar, 2020
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    No you are not right. ATO has every right to ask and you may have lost your right to recover this money.
     
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