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ATO to hold more power over tax refunds

Posted on 18 May '12 by , under General news.

New legislation drafted by the Government would allow the Australian Taxation Office to hold refunds which are pending verification checks.

The proposed law, which was released last month, would be introduced to avoid fraudulent refunds and provide the Commissioner of Taxation with legislative discretion to delay refunds to taxpayers until claim verifications are processed.

Under the drafted legislation, the ATO would withhold refunds, from both individuals and businesses, for at least 60 days for authentication.