In Multiflex Pty Ltd v. The Commissioner of Taxation, the taxpayer challenged the Commissioner’s ability to withhold goods and services tax (GST) refunds pending the completion of verification or audit activity.

If you have an activity statement refund that is being withheld by the ATO pending the completion of an audit, you should now shout “Hooray!”  The ATO has announced they will progressively release all affected activity statement refunds as soon as administratively possible.

Their notice states, “We will continue to undertake audits of refund activity statements where we have concerns about a taxpayer’s entitlement to a refund, although the audits will now often be finalised after the refund is released.”