Rwanda veterans will now be able to claim for a tax exemption under the 91-day criteria.

Photo provided by Defence Digital Media

Rwanda vets again eligible
Agreement reached with ATO

RWANDA veterans waiting for tax exemption refunds should see them shortly after a review by the Australian Taxation Office (ATO).

On July 30, the ATO confirmed that ADF personnel who served in Rwanda would be eligible for tax exemption on foreign service income under section 23AG of the Income Tax Assessment Act 1936, provided they meet the 91-day criteria.

Director Defence Tax Management Office (DTMO) Diva Divakaran said the decision has been welcomed by many Defence members who had been awaiting the outcome of the ATO review for two months.

“We released the Rwanda Tax Supplement in February 2004, advising members who were deployed on Operation Tamar that they may be eligible for a tax exemption on income received while in Rwanda,” he said.

“This tax supplement was released after extensive research by DTMO.

“The ATO started reviewing the eligibility of tax exemption for ADF members on this deployment in early June this year.

“As a result, the processing of refunds was temporarily stopped by the ATO.

“DTMO assisted ATO in their review by providing the necessary information to them.

The ATO also obtained independent legal advice before arriving at the final decision.”

Mr Divakaran said he had contacted some affected members when the ATO first released its decision and those he spoke to were pleased to know that the matter was resolved.

“The ATO has also set about contacting affected ADF members to advise them of the decision.

“This is a very good outcome for the current and former members who served on Operation Tamar.”

Mr Divakaran said DTMO had played an important role in helping the ATO reach its decision by presenting the Defence perspective.

The ATO’s decision allowed DTMO to reinstate the related Defence documentation on the subject.