Discretion to retain refunds extended to income tax
If your business has outstanding ATO lodgments or other notifications, the ATO now has the power to retain your income tax refund. This previously only applied to business activity statements, but the government extended the ATO’s power combat phoenixing activities. The ATO notes that these new powers to retain refunds will not be taken lightly and will only be exercised where the taxpayer has been identified as engaged in high risk behaviours or when indicators of phoenixing is present.
