The Australian Tax Office (ATO) warns that poor-quality, inaccurate global positioning system (GPS) technology products can result in fuel tax credit overclaims leading to government penalties, reports the Australasian Fleet Management Association (AfMA).

The recently released Taxpayer Alert TA 2021/3: outlines the ATO’s concerns with marketers and tax professionals promoting (GPS) technology. Several problems have been identified with some products, including poor quality or intermittent GPS data lacking sufficient checks.

Unusually large refunds based on potential faulty GPS technology are now under ATO review. Claimants may be subject to penalties and interest for any incorrect claims. The marketing of flawed products may also be subject to sanctions under the promoter penalty laws.

GPS technology, where supported by robust checks and evidence, can assist in calculating and supporting fuel tax credit claims.

Learn more about the fuel tax credit Taxpayer Alert here.