The current time and value limits for correcting prior period GST debit errors range from 12 - 18 months and $10K to $450K depending on GST turnover. Where these limits are exceeded however, taxpayers are required to correct every impacted Business Activity Statement (BAS) lodged in the previous four years. This increases compliance costs for both taxpayers and the ATO. Propose therefore that both the time and value limits for correcting prior period GST debit errors be increased.
The Board agrees this idea has support within the tax community. The Board will raise this at an appropriate stage but ultimately policy is a matter for Government.
The ATO have advised that the recently revised GSTE 2013/1 reflects changes in threshold levels. See: http://law.ato.gov.au/atolaw/view.htm?DocID=GLD/GSTE20131/00001
The Sounding Board community are welcome to make further comments.
http://law.ato.gov.au/atolaw/view.htm?DocID=GLD/GSTE20131/00001