The Australian Tax Office (ATO) has changed the way penalty relief is applied to certain taxpayers as of 1 July 2018.
The Tax Office will no longer apply a penalty to tax returns and activity statements where eligible individuals and entities have made an inadvertent error by failing to take reasonable care or have not taken a reasonably arguable position.
If the ATO finds an inadvertent error, they will contact us to let you know how to get it right for next time.
Eligible individuals and entities with a turnover of less than $10 million, including small businesses, self-managed superannuation funds, strata title bodies, not-for-profits and co-operatives can access penalty relief.
The ATO will automatically apply penalty relief for those who are eligible and are under audit. It will also apply to periods under audit prior to 1 July 2018.
However, there is a reset period. Penalty relief will only be available once every three years at most. It is also not available if you have been penalised for reckless or intentional disregard of the law, evaded tax or committed fraud, or have been involved in any other tax avoidance schemes, i.e. phoenix activity.
To discuss further, please contact the AGS Accounting Team today.
Published : 20 Sep 2018