Late Tax Returns and ATO Penalties
Right now is a great opportunity to get your tax returns up to date with the ATO, ahead of the New Tax Year starting on July 1.
We may even be able to do this, with no penalties or interest charges being imposed by the ATO.
In recent years, the ATO has also increased lodgement penalties. Prior to 2012, the penalty unit of $110 was boosted to $170. It increased again in 2015 to $180 and in 2017 to $210.
And that is just for one penalty unit.
The ATO may impose a penalty unit, for each 28 days (or part thereof) that each of your income tax returns are lodged late.
Fortunately, penalty units are capped at 5 units. But this means the maximum penalty for most taxpayers is currently $1050, being 5 units x $210.
But the ATO may impose these penalties, for each return that is lodged late.
At Tax Services Australia, we specialise in bringing taxpayers up to date, and we look forward to getting you back into the ‘good books’ of the ATO too, hopefully without any penalties.
You might even be entitled to a tax refund.