House of Representatives
Taxation Laws Amendment (Self Assessment) Bill 1992
Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Glossary of Commonly Used Terms
Set out below are brief descriptions of commonly used terms in the Bill and explanatory memorandum. Where terms are explained in detail in chapters of this document, a reference is given to the chapter where the term is explained.
| Arrangement | explained in Chapter 1. Includes a transaction |
| Assessment | the ascertainment of the taxable income and tax payable for a year of income for a taxpayer |
| Binding ruling | a ruling that limits the amount of tax payable by the taxpayer to that which would be payable on the basis of the ruling |
| Commissioner assessment | an assessment where the Commissioner considers the application of the law to a taxpayer and does not merely rely on statements made by the taxpayer |
| Debit amendment | the amendment of an assessment for a year of income to increase the tax liability of the taxpayer for the given year of income |
| Election | the exercise by the taxpayer of a choice provided under the Income Tax Assessment Act (ITAA) |
| Full self assessment | the term used to describe the calculation by a taxpayer, of the taxable income and the tax payable for the taxpayer for a year of income |
| Interest | an amount of money that is paid to compensate a taxpayer or the Revenue when the correct amount of tax in respect of a year of income has not been paid at the due date for payment of the tax for that year of income |
| Private Ruling | explained in Chapter 1. A ruling that applies to one taxpayer only |
| Public Ruling | explained in Chapter 1. A ruling that can apply to any taxpayer with circumstances that match those described in the ruling |
| Reasonably arguable position | explained in Chapter 4. A position on a question of interpretation that is arguably about as likely as not correct |
| Reasonable care | explained in Chapter 4. The care that a reasonable ordinary person would exercise in the circumstances of the taxpayer |
| Relevant entities | a term used to describe taxpayers who are currently on full self assessment |
| Review rights | a taxpayer's right to object to a taxation decision and to have the Commissioner's decision on the objection considered by the AAT or Federal Court |
| Rulee | a taxpayer to whom a Private Ruling relates |
| Scheme penalties | penalties applicable where an anti-tax avoidance provision applies |
| Self amendment | the issue of an amended assessment on the basis of details provided by a taxpayer in a request for amendment, without detailed scrutiny of the amendment details by the ATO |
| Self assessment | the term used to describe the calculation by a taxpayer of the taxable income for the taxpayer for a year of income |
| Statutory rate | the rate of interest published by the Commissioner as the rate to be used when calculating interest payments in respect of a specific period of time |
| Tax shortfall | the term used to describe the amount by which the tax payable by a taxpayer for a year of income, as calculated by the taxpayer, is less than the amount of tax that is properly payable by the taxpayer for the year of income |
| Tax shortfall penalties | explained in Chapter 4. The penalties that apply where there is a tax shortfall |
| Taxation decision | the assessment, determination, notice or decision against which a taxpayer may object |
| Taxation statement | explained in Chapter 4. A statement made to a taxation officer |
| Understatement penalties | tax shortfall penalties and scheme penalties |
| 13 Week Treasury note rate | the term used to describe the weighted average yield of a tender for short term (13 Week) Treasury Notes |