16 August 2007

Report by the Inspector-General of Taxation

The Government today released the Inspector-General of Taxation’s report Review of Tax Office’s management of complex issues — Case study on research and development syndicates.

Minister for Revenue and Assistant Treasurer, Peter Dutton, said the Inspector-General’s report into research and development (R&D) syndicates is one of three case studies into the Tax Office’s ability to identify and deal with major, complex issues within reasonable timeframes. This case study examined issues arising from tax deductions claimed from R&D syndicates between 1989-90 and 1996-97.

“In response to the Report, the Tax Office has agreed to reconsider some research and development syndicate cases,” Mr Dutton said.

Significant changes to tax administration in recent years, such as those arising from the response to the Government’s review of Australia’s self-assessment system, have addressed some of the concerns raised in the Report.

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