The ATO Thinks It’s Going Soft

September 12, 2016

The ATO Thinks It’s Going Soft | AIA

The ATO has issued a consultation paper in which it is proposing changes to penalties for small business and individuals.

In an on-going effort to encourage people to be willing participants in the tax system, the ATO is looking to soften its approach to the application of penalties for situations where there has been a failure to take reasonable care or a failure to lodge various returns on time.

While the ATO describes this as a “softening” in their approach, it is limited to one chance only for the first error and late lodgment. The ATO says that if the community supports the proposed changes, it will have the following rules

  • It will be available to small business with less that $2 million turnover, and to individuals with eligble “clients” being informed of the one time opportunity
  • It will not be available to clients who have a history of recklessness or dishonest behaviour or who do not engage with the ATO during audits or reviews
  • The ATO will indicate that normally a penalty would apply, but not on this occassion
  • The ATO will explain to the client how the error occurred and how they are to deal with the situation in the future to get it right
  • After a three to four year period, the one chance opportunity would reset
  • If the client does not lodge on time after the one time opportunity, fines and penalties will apply

If you want to read the proposal paper, click here

If you need help or assistance with your tax debt, call The Insolvency Experts 24 hours a day on 1300 767 525 for genuine advice, provided free of charge, and without obligation.



This article is not to be construed as legal advice but is presented for information and research purposes only. No guarantee implied or expressed is given in respect of the information provided and accordingly no responsibility is taken by The Insolvency Experts or any member of the company for any loss resulting from any error or omission contained within this article.

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