Pitcher Partners Advisors Proprietary Ltd ABN 80 052 920 206
Ref: AMK:lg
Level 13, 664 Collins Street Docklands VIC 3008 Level 1, 80 Monash Drive Dandenong South VIC 3175
13 September 2022
Postal Address GPO Box 5193 Melbourne VIC 3001 p. +61 3 8610 5000
Director, Tax Administration Unit Individuals and Indirect Tax Division, Treasury Langton Cres PARKES ACT 2600 By Email: taxadministrationconsultation@treasury.gov.au Dear Sir/Madam PROPOSED EXCLUSIONS FROM SHORTER PERIOD OF REVIEW FOR SMALL AND MEDIUM ENTITIES 1.
Thank you for the opportunity to provide comments to the Exposure Draft legislation Income Tax Assessment (1936 Act) Amendment (Period of Review) Regulations 2022 (“ED”) and accompanying draft explanatory materials (“EM”).
2.
Pitcher Partners specialises in advising taxpayers in what is commonly referred to as the middle market. Accordingly, we service many clients that would be impacted by the measures proposed in the ED.
3.
We welcome the proposed modifications to the regulations that will provide a limited period of review for small taxpayers.
4.
However, we are concerned that the proposed regulations inappropriately extend to small entities and other non-business entities with simple tax affairs, beyond the intended policy scope.
5.
On its consultation webpage,1 Treasury states that the proposed further limitations on the two-year period of review (“POR”) are based on the previous Government’s 2020-21 Budget announcement. That announcement proposed to extend the shorter two-year POR from 1 July 2021 for entities with up to $50m aggregated turnover, except those with “significant international tax dealings or particularly complex affairs”.2
1
https://treasury.gov.au/consultation/c2022-298165 Budget Paper No. 2, Budget Measures 2020-21, page 16.
2
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Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. B J BRITTEN D A THOMSON M C HAY S SCHONBERG S DAHN P A JOSE
A R YEO M J HARRISON P W TONER T SAKELL G I NORISKIN A T DAVIDSON
K L BYRNE C D WHATMAN S D WHITCHURCH A E CLERICI D J HONEY G J NIELSEN
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