PROSECUTIONS TO SPIKE FOR LATE RETURNS

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The ATO has issued a series of public messages urging taxpayers to lodge their tax returns by the 31st October deadline.

Tax-related prosecutions have spiked in recent years with over 1,300 individuals and 400 companies prosecuted in FY16. 880 were GST related and over 1,030 income tax.

The ATO is not buying excuses easily – especially if there is a suspected a tax debt or an outstanding return for previous years.

Accountants and Tax Agents such as Growth Partners can try and avoid imposed penalties for their clients by meeting the return deadline by 31 October. Alternatively, an extension can be requested however clients need to be added to the Growth Partners’ client lodgement program by 31 October.

The best excuses

Some of the boldest examples that ATO officers have cited for non-compliance this year so far include one from a taxpayer who told the ATO their paperwork flew out the window on the way to see their accountant. Another said that their accountant had gone to prison and was slower at processing returns because of the restricted access to computers behind bars!

And there’s more – another said his wife had burnt all his tax records, which was matched by another who said that he had an illness that prevented him from visiting his accountant because his illness only allowed him to work 30 minutes a week!

The deadline!

So far this year, 7.7 million tax returns have been lodged with millions expected to be lodged by the 31st October deadline.

Contact your closest Growth Partners’ office asap! With 13 offices located around the Perth metropolitan area and South-West region, we’re not far away.

Growth Partners