What is the primary purpose of the ATO Green Book?

The ATO Green Book primarily serves as a guide for interpreting and administering tax law within Australia. Its purpose is to provide clarity and assistance to taxpayers, professionals, and the administration itself on how tax laws should be applied in practice. By detailing principles, processes, and approaches, it ensures that tax obligations are understood and fulfilled correctly, facilitating fairness and compliance in the tax system.

While detailed legislative texts can be important for legal references, the primary focus of the Green Book is on guidance rather than the creation of law. It does not focus specifically on penalties, as those are outlined in different regulations. Furthermore, promoting tax evasion strategies contradicts the ethical and legal framework within which the ATO operates, making that option irrelevant to the book's actual purpose. Thus, option B accurately encapsulates the essence of the ATO Green Book's role in supporting effective tax administration.