The Full Federal Court has ruled the ATO’s discretion in denying certain businesses access to JobKeeper and the cash flow boost was applied narrower than it was intended to be.
This court ruling was handed down in March, with the ATO confirming they will begin a review of certain previous decisions, using the wider discretion deemed appropriate, to assess if a different outcome is possible.
This broadening of scope will grant further time for a business to hold an ABN, and further time to provide notice to the commissioner of assessable income or supplies. Robyn Jacobson from the Tax Institute expects ‘it [to] affect thousands of taxpayers’ who were told they weren’t eligible.
This automatic review of decisions by the ATO will only apply to applications that have met all other eligibility criteria for the COVID-19 stimulus payments. Each case will be reviewed by the commissioner and if overturned, ATO will contact taxpayers individually for more information.
For more information, including how this might affect you and what happens next, please visit the ATO’s website here.
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Quote resource: Jotham Lian 30 April 2021