Notes to the financial statements
Basis of accounting
The agency budget statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts.
Agency
The ATO is budgeting for an operating deficit to 2001-02. Approval for this deficit was obtained from the Treasurer and comes about as a result of pressures on the ATO budget in relation to unexpected workload volumes, the increase in activity to meet community demands and the steps being taken to maintain the integrity of the tax system in transition.
Administered
Recognition of taxation revenue
For 2000-01 to 2001-02 and forward years administered taxation revenue has been brought to account on a year by year basis where:
- the identity of the taxpayer is certain;
- the amount of the liability or refund is certain;
- the liability or entitlement to a refund has been notified to the Commissioner
or advised by the taxpayer;
- there is an intention on the part of the Commissioner to collect the liability;
and
- there is a legislative intent by the Commonwealth to change the basis or
application of taxation law.
This recognition policy does not include the following item as revenue of the period:
- estimates of future collections or refunds from Individuals in respect
of income tax returns to be lodged for the current financial year ended at
30 June;
- estimates of installments of tax and final payments for companies due after
30 June;
- estimates of final amounts for Petroleum Rent Resource Tax due after 30 June;
and
- actual payments for Pay As You Go, Goods and Services Tax, Excise and Withholding
Taxes for amounts collected or withheld in June but not remitted to the Commissioner
until July.
Items recognised as reductions to taxation revenue
The following items are recognised as reductions (increases) to taxation revenue and not as expense:
- refunds of revenue;
- increase (decrease) in movement of provision for credit amendments;
- diesel fuel rebates and diesel fuel credits; and
- increases (decreases) in movement of provision for diesel fuel rebates.
Appendices 1 and 2
Appendix 1
Non-appropriation agency and administered revenue
Appendix 2
Estimates of expenses from special appropriations
