The draft statement provides comprehensive guidance on the issuance and management of deduction notices, detailing the criteria and conditions for issuing notices to third parties to recover outstanding tax liabilities. It includes guidelines on calculating deductions, with specific limits to prevent excessive financial burden on taxpayers, and instructions on calculating daily interest on outstanding amounts.

The draft also outlines procedures for revoking deduction notices once the required amount is collected, emphasises the importance of notifying taxpayers to ensure transparency and compliance, and clarifies the application of deduction notices to joint accounts, foreign currency accounts, and other specific situations.

Once finalised the draft statement will replace SPS 21/01 Deduction Notices.

CA ANZ proposes two improvements to the document.