Many taxpayers have avoided their obligations to lodge income tax returns without any adverse consequences – so far. It is not uncommon for those un-lodged income tax returns to result in refunds and often the failure of the ATO to follow-up has been because a refund occurred in the last year lodged. It would appear that the holiday is over. The ATO is starting to take action and advise tax agents of outstanding returns and starting to impose penalties. Failure to lodge a tax return just like failure to lodge a Business Activity Statement can result in a fine. $220 is the typical starting point, but for multiple years non-lodgements $1,100 - $2,200 can also be imposed. By the time a penalty is imposed four or five times, that cost can well exceed $5,000. You need then to ask for remission and although a remission might be approved, that is only likely if you agree to do something, or you in fact lodge the outstanding returns. Is it worth the trouble? Is it worth the cost?
23rd-April-2011 | 