If detailed information is provided more often, it is inevitable there will be some errors so there needs to be a way for them to be corrected.
It is proposed that taxpayers should be able to self-correct errors below the higher of:
- a simple dollar value threshold, or
- a percentage threshold based on the amount of withholding tax paid.
A threshold based solely on a simple dollar value would be inappropriate as it would be too low to allow large payers to correct relatively minor errors. A very small error across a large number of customers quickly adds up.
A threshold based solely on a percentage would be inappropriate as it may mean small payers couldn’t correct errors that may be small in dollar terms. For example, a $50 error that equated to 20% of their total payment of $250.