International Law

The Government has released the Inspector-General of Taxation?s report on the Review of the potential revenue bias in private binding rulings involving large complex matters.

The review looked at whether there is a ?pro-revenue? bias evident in private binding rulings (PBRs) issued by the Australian Taxation Office (the Tax Office).

The Inspector-General found no evidence of undue revenue bias in PBRs. However, he did find that the perceptions of undue revenue bias by the Tax Office are widespread.

The Inspector-General has recommended that the Tax Office should act to reduce the widespread perceptions of revenue bias among large business PBR applicants by:

• increasing transparency, improving  communication and more clearly demonstrating objectivity;
• clarifying and adhering to the  processes and protocols that govern inter-agency interactions; and
• further reducing delays in large  business PBR processes.

The Tax Office agrees, in part or  wholly, to all of the recommendations contained in the report.