29 January 2013

Late lodgement penalties

We know that the year is flying by and when, you are busy, lodging your tax returns can be the last thing on your mind!  However here is an incentive – the Tax Office can apply penalties for failing to lodge tax returns, activity statements and forms on time and has just increased the penalty rate.

The failure to lodge penalty is calculated at the rate of $170 (increased from $110) for each 28 days or part thereof that the document is overdue, to a maximum of $850 (that is, 112 days late).  Entity turnover tests apply, so that larger entities incur higher penalties rates.

Although we have had considerable success in having penalties remitted in the past, it can't be assumed the ATO will always be so lenient.

The penalty applies to the late lodgement of the following documents;
  • Activity statements
  • Income tax returns
  • FBT returns
  • PAYG withholding annual reports
  • Annual GST returns
We will advise you when relevant lodgement dates are approaching; however sending your information in earlier will help us ensure your documents are lodged by the due date.

If you have any questions on lodgement dates relevant for you, please contact us.

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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.

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