I am five years behind in lodging my tax returns and BAS. Will I get into trouble?
The ATO phones are manned by Humans! They have a heart too…The matter just needs to be handled correctly. That’s where we come in.
You should lodge your outstanding tax returns as soon as possible and before the Australian Taxation Office takes any action. Once they have begun any action, it could result in a court conviction, defaults, liquidation or bankruptcy. The ATO may charge a penalty of $170 for every 28 days that the return is outstanding. The maximum penalty is $850 even if you are due a refund. In addition, the ATO will charge interest. This is called the general interest charge and is levied on any outstanding monies. The rate for the July to September, 2013 quarter is 9.82%.
In regard to a Failure to Lodge (“FTL”) Penalty for BAS, the penalty unit has increased from $110 to $170, with the maximum fine for small business being 5 units. Essentially, this ‘can’ translate to a fine of $850 for not lodging your quarterly BAS.
However, fines can be remitted under certain circumstances. Call CGH Accounting to discuss these matters ASAP!