We assist you to remit or reduce ATO Penalties or other Tax Penalties
the ATO
Administrative penalties
A uniform administrative penalty regime applies for non-compliance with a “taxation law”, and the tax penalty regime is located in the Taxation Administration Act. The Act provides the legislative jurisdiction for the imposition of penalties for:
- failure to lodge activity statements, returns and other documents on time
- making false or misleading statements or, in respect of income tax laws, taking positions in statements that are not reasonably arguable
- shortfall amounts relating to schemes and failure to make a statement required for determining a tax-related liability, and
- failure to meet various other tax obligations.
The Commissioner has to provide written notice of a penalty and the reasons why the taxpayer is liable to pay the penalty. If the taxpayer did not receive the notice but charged the penalty, then the penalty decision is not subject for an objection.
Where the Commissioner refers to the Director of Public Prosecutions to prosecute a person for a taxation offence and prosecution proceedings are instituted, the person ceases to be liable to pay the administrative penalty.
General Interest Charge for late payment
If a taxpayer does not pay the correct amount of tax on time, the taxpayer will be liable to pay general interest charge (GIC) on the tax unpaid after the due date.
Assessments of penalties and, with certain exceptions, decisions relating to the remission of penalties are reviewable in accordance with the Taxation Administration Act.
If you require any advice or assistance for your tax matter, please contact our office.