25 February 2008

Potential Revenue Bias In Private Binding Rulings: Inspector-General Report Released

The Government today 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.

The report, which also contains the Tax Office response, is available at www.igt.gov.au.

25 February 2008

Media Contact: James Cullen - 0409 719 879