Goods and Services Tax: Correcting GST Errors Determination 2013
Reference: GSTE 2013/1 (As Amended)
Document type: Determination
Enabling act: A New Tax System (Goods and Services Tax) Act 1999
Date of issue: 23 April 2013
Signatory: James O'Halloran Deputy Commissioner of Taxation
Registration number: F2017C00156 (originally issued as F2013L00754)
Registration date: 1 March 2019 (originally issued on 9 May 2013)

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted

1. Name of Determination: This Determination is the Goods and Services Tax: Correcting GST Errors Determination 2013. | 3. Application: a. This Determination applies in working out a net amount for a tax period for which you give the Commissioner your GST return on or after the commencement date of the Determination. b. This Determination does not apply in working out a net amount for a tax period that started before 1 July 2012. a. This Determination applies in working out a net amount for a tax period for which you give the Commissioner your GST return on or after the commencement date of the Determination. b. This Determination does not apply in working out a net amount for a tax period that started before 1 July 2012. | 4. The object and purpose of this Determination: (1) This Determination specifies the circumstances in which you may, in working out your net amount for a tax period, correct errors that were made in working out your net amount for an earlier tax period. (2) Applying this Determination will minimise your compliance costs and any liability you may have for the general interest charge or to administrative penalties because you will not need to revise your GST return or request the Commissioner to amend your assessment, in those circumstances. (3) Applying this Determination will also minimise the Commissioner's administrative costs because it will result in reduced costs in processing revised GST returns or requests for amendments. (1) This Determination specifies the circumstances in which you may, in working out your net amount for a tax period, correct errors that were made in working out your net amount for an earlier tax period. (2) Applying this Determination will minimise your compliance costs and any liability you may have for the general interest charge or to administrative penalties because you will not need to revise your GST return or request the Commissioner to amend your assessment, in those circumstances. (3) Applying this Determination will also minimise the Commissioner's administrative costs because it will result in reduced costs in processing revised GST returns or requests for amendments. | 5A. You cannot correct an error by requesting an amendment for a later tax period: To avoid doubt, you cannot correct an error from an earlier tax period in a later tax period by requesting an amendment of your assessable amount for that later tax period. | 5. Circumstances where an error may be corrected: In working out your net amount for a tax period, you may correct an error made in working out your net amount for an earlier tax period: (a) if the error relates to an amount of GST, an input tax credit or any adjustments under the A New Tax System (Goods and Services Tax) Act 1999; and (b) if the earlier tax period started on or after 1 July 2012- you lodge the GST return for the later tax period within the period of review for the assessment of the net amount of the earlier tax period; and (c) if the earlier tax period started before 1 July 2012 and the error does not relate to an amount that: (i) ceased to be payable by you because of section 105-50 in Schedule 1 to the Taxation Administration Act 1953; or (ii) you are not entitled to because of section 105-55 in Schedule 1 to the Taxation Administration Act 1953; and (d) if at the time of lodging your GST return for the tax period, the error (i) does not relate to a matter that is specified as being subject to a compliance activity, and (ii) was not made in working out your net amount for an earlier tax period that is subject to a compliance activity; and (e) if you have not taken account of that error, to any extent, in working out your net amount for another tax period; and (f) if the error is a debit error, all of the conditions in Clause 6 of this Determination are satisfied. (a) if the error relates to an amount of GST, an input tax credit or any adjustments under the A New Tax System (Goods and Services Tax) Act 1999; and (b) if the earlier tax period started on or after 1 July 2012- you lodge the GST return for the later tax period within the period of review for the assessment of the net amount of the earlier tax period; and (c) if the earlier tax period started before 1 July 2012 and the error does not relate to an amount that: (i) ceased to be payable by you because of section 105-50 in Schedule 1 to the Taxation Administration Act 1953; or (ii) you are not entitled to because of section 105-55 in Schedule 1 to the Taxation Administration Act 1953; and (d) if at the time of lodging your GST return for the tax period, the error (i) does not relate to a matter that is specified as being subject to a compliance activity, and (ii) was not made in working out your net amount for an earlier tax period that is subject to a compliance activity; and (e) if you have not taken account of that error, to any extent, in working out your net amount for another tax period; and (f) if the error is a debit error, all of the conditions in Clause 6 of this Determination are satisfied. (i) ceased to be payable by you because of section 105-50 in Schedule 1 to the Taxation Administration Act 1953; or (ii) you are not entitled to because of section 105-55 in Schedule 1 to the Taxation Administration Act 1953; and (i) does not relate to a matter that is specified as being subject to a compliance activity, and (ii) was not made in working out your net amount for an earlier tax period that is subject to a compliance activity; and | 6. Additional conditions that apply to correcting a debit error: In working out your net amount for a tax period, a debit error made in working out your net amount for an earlier tax period, may only be corrected: (a) if the error was not a result of recklessness as to the operation of a GST law or intentional disregard of a GST law; and (b) if that error is corrected in a tax period that is within the debit error time limit that corresponds with your current GST turnover in the table below; and (c) to the extent that the net sum of the debit errors is within the debit error value limit that corresponds with your current GST turnover in the table below Current GST turnover Debit error time limit Debit error value limit Less than $20 million The error must be corrected in a GST return that is lodged within 18 months of the due date of the GST return for the tax period in which the error was made. Less than $10,000 $20 million to less than $100 million The error must be corrected in a GST return that is lodged within 12 months of the due date of the GST return for the tax period in which the error was made. Less than $20,000 $100 million to less than $500 million The error must be corrected in a GST return that is lodged within 12 months of the due date of the GST return for the tax period in which the error was made. Less than $40,000 $500 million to less than $1 billion The error must be corrected in a GST return that is lodged within 12 months of the due date of the GST return for the tax period in which the error was made. Less than $80,000 $1 billion and over The error must be corrected in a GST return that is lodged within 12 months of the due date of the GST return for the tax period in which the error was made. Less than $450,000 (a) if the error was not a result of recklessness as to the operation of a GST law or intentional disregard of a GST law; and (b) if that error is corrected in a tax period that is within the debit error time limit that corresponds with your current GST turnover in the table below; and (c) to the extent that the net sum of the debit errors is within the debit error value limit that corresponds with your current GST turnover in the table below | 7. Definitions: The following expressions are defined for the purposes of this Determination: compliance activity is an examination of your GST tax affairs and begins on the day the Commissioner tells you that an examination is to be made and ends on the day when one of the following occurs: (a) (a) the Commissioner gives a notice of assessment or amended assessment in relation to the tax period under examination; or (b) the Commissioner tells you that the examination has been finalised. A compliance activity includes matters related to reviews, audits, verification checks, record-keeping reviews/audits and other similar activities. credit error is an error you made in working out your net amount for an earlier tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount for that earlier tax period being overstated. debit error is an error you made in working out your net amount for an earlier tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount for that earlier tax period being understated. error is a mistake you made in working out your net amount for a tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount being overstated or understated. An error does not include an amount that the Commissioner need not refund to you under section 105-65 in Schedule 1 to the Taxation Administration Act 1953, unless the Commissioner exercises the discretion to give you a refund. net sum of the debit errors is the sum of one or more debit errors less the sum of any credit errors which you include in the net amount for the tax period in which you seek to correct the relevant debit error. compliance activity is an examination of your GST tax affairs and begins on the day the Commissioner tells you that an examination is to be made and ends on the day when one of the following occurs: (a) (a) the Commissioner gives a notice of assessment or amended assessment in relation to the tax period under examination; or (b) the Commissioner tells you that the examination has been finalised. A compliance activity includes matters related to reviews, audits, verification checks, record-keeping reviews/audits and other similar activities. credit error is an error you made in working out your net amount for an earlier tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount for that earlier tax period being overstated. debit error is an error you made in working out your net amount for an earlier tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount for that earlier tax period being understated. error is a mistake you made in working out your net amount for a tax period that would, if it was the only mistake made in the tax period, have resulted in your net amount or assessed net amount being overstated or understated. An error does not include an amount that the Commissioner need not refund to you under section 105-65 in Schedule 1 to the Taxation Administration Act 1953, unless the Commissioner exercises the discretion to give you a refund. net sum of the debit errors is the sum of one or more debit errors less the sum of any credit errors which you include in the net amount for the tax period in which you seek to correct the relevant debit error. (a) (a) the Commissioner gives a notice of assessment or amended assessment in relation to the tax period under examination; or (b) the Commissioner tells you that the examination has been finalised. Other expressions in this Determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 and the Taxation Administration Act 1953. Endnotes Notes to the Goods and Services Tax: Correcting GST Errors Determination 2013 Note 1: The Goods and Services Tax: Correcting GST Errors Determination 2013 (in force under subsection 17-20(1) of the A New Tax System (Goods and Services Tax) Act 1999) as shown in this compilation is amended as indicated in the Tables below . Legislative History Name Registration Commencement Application, saving and transitional provisions Goods and Services Tax: Correcting GST Errors Determination 2013 (F2013L00754) 9 May 2013 10 May 2013 c 2 Correcting GST Errors Amendment Determination 2017 (No.1) (F2017L00143) 22 February 2017 1 March 2017 c 2 c 3