ATO Practice Statement Law Administration

PS LA 2003/1

Petroleum excise duty - reporting for adjustments outside the current reporting period

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This Practice Statement outlines the arrangements in place to allow petroleum excise payers to make adjustments for overpayments or underpayments that have occurred outside the current reporting period.

1. What this Practice Statement is about

This Practice Statement outlines the administrative arrangements in place to allow certain petroleum excise payers to make adjustments on an excise return for overpayments or underpayments that have occurred outside the current reporting period. These arrangements remove the requirement to seek specific approval for each occasion.

2. When the administrative arrangements apply

Before we apply the administrative arrangements, the client must be assessed as low risk and will need to formally agree to only make adjustments where:

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there is minimal impact on the settlement payment for the period

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the client has an accounting system which is compliant with our requirements.

The client will also need to confirm:

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that supporting documentation will be maintained and made available to us on request

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that any adjustments that are found to have been incorrectly claimed will be corrected by an adjustment to the next excise return and reported on the next out-of-period adjustment report (Report). This may involve a set-on (debit adjustment) or set-off (credit adjustment) for an incorrect refund, drawback claim, underpayment or overpayment of excise liability

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which method they will use when utilising the arrangement (see section 5 of this Practice Statement).

3. Accepting an agreement

When an agreement is accepted, the client should be advised in writing, along with advice of when the Report is required to be provided (see section 4 of this Practice Statement).

The advice should inform the client that acceptance of the agreement does not diminish or remove our ability to prosecute or take any other action.

4. Out-of-period adjustment report

If adjustments apply, the client must supply a Report at the time of lodging their excise return (or at the alternative interval agreed to), which should detail the:

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Australian business number

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client name

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adjustment claim code^[1], including:

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Retr – returns of physical product

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Stor – errors of fact in relation to bunkers

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Erro – errors of fact of misconception of law

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Roth – does not fit into the above

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Draw – drawbacks for duty-paid product being exported

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date of effect of duty

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tariff classification

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quantity^[2]

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excise duty rate

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dollar amount

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comments (that is, vessel name for drawbacks)

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net adjustment result, and

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signature.^[3]

5. Utilising the arrangements

There are 2 ways in which clients can utilise the arrangements. Under either arrangement, a Report will detail all debit and credit adjustments identified during that period and will be netted off on the final excise payment.

Adjustments are not made to the quantity for the same product reported in the excise return

Where adjustments are not made to the quantity for the same product reported in the excise return, the net total of the Report will appear in the Out of period adjustment return (OOPAR) field and will be added or deducted from the total excise payable for that period. A positive amount will denote a debit and a negative amount will denote a credit.

Adjustments are made at the line level to the quantity for the same product reported in the excise return

Where adjustments are made at the line level to the quantity for the same product reported in the excise return, the Out of period adjustment return (OOPAR) field will only contain adjustment amounts relating to product for which there was insufficient quantities of that product delivered during the current period. This amount will be either added or deducted from the total excise payable for the period.

Amendment history

 

 

 

 

 

Date of Issue: 2 April 2003

Date of Effect: 1 July 2003

File 2003/003426; 1-7JMQAVO

Business Line:  SB

ISSN: 2651-9526