As anticipated in the October edition of Voice, the NTAA recently made a detailed written submission to the Tax Ombudsman regarding her review into the ATO's approach to the remission of the general interest charge ('GIC') applied to unpaid tax debts. 

Our submission was based on feedback provided to the NTAA by its membership base in response to our request for tax practitioner views on the ATO's administration of the remission of GIC. 

In our written submission, we stated that tax practitioners and their clients widely regard the ATO's current practices relating to GIC remission as inconsistent, opaque, and lacking empathy for taxpayers with tax debts (and GIC) under extenuating circumstances beyond their control. 

We also stated in our submission that we had received regular feedback from members indicating that it appears that GIC remission requests are now being refused almost uniformly, regardless of the taxpayer's circumstances. 

Our submission also noted that the reported sentiment from others who have successfully obtained some remissions is that the process has become unpredictable, with outcomes apparently dependent on the officer handling the case rather than on consistent principles or published guidance. 

In particular, we submitted that the ATO's current approach to GIC remission is inconsistent, lacks transparency and in certain circumstances has presented as being unduly harsh on taxpayers with legitimate reasons (i.e., beyond their control) for carrying overdue tax debts. The denial of GIC deductibility from 1 July 2025 only amplifies these problems. 

We will keep you informed in relation to further developments. 

Editor: A copy of our written submission is on our website — click here.