Questionable “products” leading to excess fuel tax credits: ATO taxpayer alert

September 23, 2021

The ATO has issued taxpayer alert TA 2021/3: Fuel tax credit overclaims arising from aggressive marketing and use of GPS telematics technology products.

The Alert raises the ATO’s concern that the methods used by some Global Positioning System (GPS) or telematics technology products (Product) lead to an incorrect apportionment of fuel tax credits (FTCs).

The Alert makes clear the ATO is aware that some marketers or tax professionals may be aggressively encouraging FTC clients to use their Product by making misleading assertions of legitimate large FTC refunds.

The ATO is scrutinising FTC claims which have been prepared using Products that exhibit what is termed questionable practices, which are set out in the Alert. Where necessary, the ATO will adjust FTC claims and may impose penalties and interest for the FTC clients.