COURT CAN'T REVIEW TAX OFFICE DECISION TO DELAY GST REFUNDS PAYABLE

In a recent case, the Federal Court dismissed a taxpayer's application for a review of a Deputy Commissioner's decision to ‘withhold’ GST refunds that were payable under the GST Act. The Court held the taxpayer had no reasonable prospect of obtaining the relief sought.

TIP: This case demonstrates that in such situations a taxpayer is unable to ‘force’ the Tax Office to release a refund. If a taxpayer is the subject of a Tax Office audit, a GST refund may be withheld. Also, the Commissioner can apply the refund against any outstanding liabilities.