Indirect Tax Significant Issues

(1)

FORTNIGHTLY REPORT INDIRECT TAX 06-11-2013

_SENSITIVE

FORMAT AUDIENCE DATE CLASSIFICATION

FILE REF: 06-11-2013

Indirect Tax Significant Issues

Fortnightly Significant Issues report for 06 November 2013

SENSITIVE

For further information or

questions, call Ian Dawson ext 66708

(2)

SENSITIVE

FORTNIGHTLY SIGNIFICANT ISSUES REPORT FOR 06 NOVEMBER 2013

No ISSUE TITLE SES Officer Updated Current Status Risk

Rating Corp Issue

102 Low Value Import GST Paul Southwell 09/10/13 Working with agencies on models & cost of bus case Green No

SENSITIVE

PAGE 2 OF 15

(3)

SENSITIVE

New Issue Removed Issues

SENSITIVE

PAGE 3 OF 15

(4)

(5)

_SENSITIVE

FILE REF: 20-11-2013

Indirect Tax Significant Issues

Fortnightly Significant Issues report for 20 November 2013

SENSITIVE

(6)

SENSITIVE

PAGE 2 OF 16

(7)

SENSITIVE

New Issues Removed Issues

SENSITIVE

PAGE 3 OF 16

(8)

(9)

_SENSITIVE

FILE REF: 04-12-2013

Indirect Tax Significant Issues

Fortnightly Significant Issues report for 20 November 2013

SENSITIVE

(10)

SENSITIVE

PAGE 2 OF 15

(11)

SENSITIVE

New Issues Removed Issues

SENSITIVE

PAGE 3 OF 15

(12)

(13)

FILE REF: [FILE NO.]

ATO/TREASURY LIASION MEETING BRIEF

Agenda Item 6.2 – Low Value Import GST $1000 exemption threshold Speaker – Paul Southwell

Points of discussion/outcome:

To update on Low Value import GST $1000 exemption threshold

BACKGROUND

An interdepartmental committee lead by Customs is preparing a business case to implement parcel processing efficiencies at the border including the application of GST so that changes to the $1000 GST free threshold can be considered. The business case is based on

recommendations made by the Low Value Parcel Processing Taskforce and the interim response by the Government in December 2012.

The ATO is leading responses on four of the 17 recommendations in the report and working closely with Customs and Treasury on other key recommendations supported by a core design team representing various areas in the ATO. Agency heads from the relevant departments met on 11 June 2013 to provide strategic guidance to the interdepartmental committee. Timeframes are extremely tight.

UPDATE

 The new government has requested that work continue on the business case and their position will be provided on review of that business case. Consultation with the States and Territories will also be required.

BRIEF ITX EXEC 17 OCTOBER 2013

_{FOR OFFICIAL USE ONLY}

FOR OFFICIAL USE ONLY

PAGE 1 OF 2

(14)

UNCLASSIFIED

INSERT DOCUMENT TITLE

UNCLASSIFIED

PAGE 2 OF 2

(15)

GST administration September quarter performance report

CONTRIBUTION TEMPLATE

Version Reporting period Year to date figures

March report 1 July 2013 to 30 September 2013 1 July 2013 – 30 September 2013

Section

New Policy

SES owner

Paul Southwell

PLEASECOMPLETETHISSECTION(NO LIMIT ON SIZE OF EACH SECTION – ADJUST AS REQUIRED)

Key figures

(if applicable – include case numbers, strike rates, growth on previous figures etc)

Not applicable

Commentary

(eg how we’re tracking, comparisons to previous periods etc – please ensure that commentary is provided on reasons behind any significant variations)

Low Value Parcel Processing Taskforce (LVPPT)

recommendations

The Low Value Threshold Interdepartmental Advisory

Committee (IDC), and its Reference Group, has developed

business cases to respond to the Taskforce recommendations.

The ATO has lead four of the recommendations, and supported

the development of an additional five business, lead by other

departments/agencies.

Through the development of the response, ATO has also joined

with the overall business case leads: Australian Customs and

Border Protection Service (ACBPS) and Treasury, in consulting

with external stakeholders.

though

consultation did not occur during the caretaker period.

Update/key messages

from period

(eg issues, improvements, decisions, announcements, change in approach etc)

Low Value Parcel Processing Taskforce (LVPPT)

recommendations



The ATO is developing business cases as the lead agency for

four of the recommendations, and for supporting the

development of an additional five business cases, lead by

(16)

other departments/agencies

Figures/charts

Not applicable

Suggestions for:

Foreword key points or

performance summary

Per Update/key messages from period

Links to published

information

1. Low Value Parcel Processing Taskforce - Final Report | The

Treasury

2. Press Release - Interim Response to Low Value Parcel

Processing Taskforce Report [03/12/2012]

3. Response to Low Value Parcel Processing Taskforce’s

Recommendations

Comments/other

Not applicable

Please return to

States and Territories Relations

Mailbox when completed by due date

(17)

(18)

(19)

(20)

PROTECTED

LOW VALUE THRESHOLD BUSINESS CASE - ATO BRIEF

PROTECTED

PAGE 2 OF 2

ATO next steps

Finalise input to the business cases by the end of September 2013. Respond to direction from the Treasurer which may include:

– a request for the second phase of development for the ICT business case to be further developed (which will most likely impact ACBPS but which may include minor ATO input)

– working through the IDC to manage forward issues, and

– implementation of ATO project and governance structures to manage any new measures, as required.

Contacts:

Paul Southwell Kathleen de Kleuver

Assistant Commissioner (ATO IDC member) Senior Director

Indirect Tax Indirect Tax

Extn 62368 Extn 66711

(21)

OFFICE MINUTE

FILE REF: [FILE NO.] TO: Andrew Orme, Senior Tax Counsel, Tax Counsel Network

Tracey Nicholson, Assistant Commissioner, Integrated Tax Design

Darryl McCarthy, Assistant Commissioner, Client Account Services (Operations) Margaret Haly, Assistant Commissioner, Operational Policy, Assurance and Law (Operations)

Ann Hurst, Assistant Commissioner, Indirect Tax

COPIES TO: [Other(s) to receive a copy]

YOUR REFERENCE: n/a

FROM: _{Paul Southwell}

Assistant Commissioner

BUSINESS LINE: Indirect Tax SECTION: External Relations and New Measures

CONTACT OFFICER: Ian Ayrton CONTACT PHONE: 02 6216 1435

ISSUE DATE: [Date minute sent] RESPONSE DATE: [Date response is required]

SUBJECT: GST low value threshold core design team - SES update

Purpose

This paper is to brief you on the work underway on the GST low value threshold. Background

From January of this year I have represented the ATO on the Inter-departmental Committee (IDC) to guide development of the models and business cases to address the Government’s final response to the question of lowering the GST low value threshold on online goods. As sponsor of the ATO project which has provided input to these developments, I appointed Ian Ayrton from Indirect Tax as the project manager. He worked closely with members of your staff through a core design team to ensure that our input was both considered and appropriate. INTERNAL OFFICE MINUTE 23 SEPTEMBER 2013

_PROTECTED

SEGMENT FORMAT ISSUE DATE CLASSIFICATION

PROTECTED

PAGE 1 OF 3

(22)

PROTECTED

GST LOW VALUE THRESHOLD – CORE DESIGN TEAM SES UPDATE

The current phase of activity to develop the costed models and formal responses is drawing to a close. There is, however, some likelihood that the Government may ask all agencies involved in this process to again refine business models. In the advice that follows, I would ask you to consider the timeframe in which we will manage forward issues. This may require further assistance from your team members to refine elements of the business case, as required. Advice or Issue

 The business case development led by Treasury and the Australian Customs and Border Protection Service (ACBPS), with input from the ATO, and agreed by the Inter-departmental Advisory Committee, is being finalised and is expected to be completed by October 2013.  Treasury is preparing a minute for the Treasurer to advise him of key outcomes and to seek

his support for continued work on the business cases (ATO has provided comment).

ATO next steps

The following steps are

 Finalise input to the business cases by the end of September 2013.  Respond to direction from the Treasurer which may include:

– a request for the second phase of development for the ICT business case to be further developed (which will most likely impact ACBPS but which may include minor ATO input)

Action

Please note the timeframes outlined above.

Finally, I would like to note the contribution of your staff to the core design team and through that, to the development of the models and the business cases. Their combined efforts have been significant determinants in the final positions being proposed. Directly and indirectly, they have all demonstrated to the seven agencies (and other external stakeholders) involved in this

PROTECTED

PAGE 2 OF 3

(23)

PROTECTED

GST LOW VALUE THRESHOLD – CORE DESIGN TEAM SES UPDATE

process the professionalism, diligence and principles by which the ATO approaches questions of policy design and new measures development.

Paul Southwell

Assistant Commissioner

External Relations and New Measures Indirect Tax

PROTECTED

PAGE 3 OF 3

(24)

(25)

On behalf of Mark Jackson

Deputy Registrar, Australian Business Register Business Reporting & Registration

(26)

REPORT EXTERNAL 28 OCTOBER 2013

_{For Official Use Only}

FILE REF: [FILE NO.]

Justification:

HITMU 2013-009

(RAB 1213-094)

For Official Use Only

questions, call ext X61435 104

(27)

ENDORSEMENT/VERSION CONTROL

CURRENT VERSION NUMBER 3.0 DATE 28 October 2013

AUTHOR

Ian Ayrton Assistant Director 02 6216 1435

CONTACTS

APPROVAL

[approver’s name] [approver’s position] [approved/not approved] [date] [approver’s name] [approver’s position] [approved/not approved] [date] [approver’s name] [approver’s position] [approved/not approved] [date]

VERSION CONTROL

Version Revision date Name of author/modifier Distributed to

1.0 10 October

2013

Ian Ayrton, Indirect Tax (ITX) Paul Southwell, ITX

2.0 25 October

2013

Bill Lolis Ian Ayrton.

3.0 28 October

2013

Ian Ayrton and Karen McDonough

Bill Lolis

(28)

EXECUTIVE SUMMARY

BACKGROUND

Currently GST and customs duty only applies to imported goods valued over $1,000. Except for alcohol and tobacco, imported goods with a value at or less than $1,000 are exempt from GST and customs duty.

In 2011, the Productivity Commission (PC) recommended in the Economic Structure and Performance of the Australian Retail Industry inquiry report, that the PC recommended low value importation threshold of over $1,000 for GST and customs duty should only be lowered when further efficiencies for processing parcels become available.1

The Low Value Parcel Processing Taskforce (the Taskforce) was created in response to the Productivity Commission report. The Taskforce final report (released 2012), made 17

recommendations, including that the low value threshold exemption for GST on imported goods be lowered when it is cost-effective to do so.2

The former Government requested the development of business cases (led by the Australian Customs and Border Protection Service) to consider implementation issues and costs, before a change to the GST threshold is further considered, In developing these business cases, several potential models to implement a lower threshold have been identified. This paper outlines a proposed process to be managed by the ATO that would be a component of one of the options to be put to Government.

1

This proposal is a component of one of the proposed initiatives designed to achieve these efficiencies. Further detail on this and other proposals are included in the Business Case which will be provided to the Government following review by the Department of Finance and Deregulation.

2

See above.

(30)

(31)

ATO next steps

 Finalise input to the business cases, as requested by ACBPS and Treasury by the end of October 2013.

 Respond to further direction from the Treasurer, which may include:

– a request for further refinement of models or options,

Contacts:

Paul Southwell Kathleen de Kleuver

Assistant Commissioner (ATO IDC member) Senior Director

Indirect Tax Indirect Tax

Extn 62368 Extn 66711