The Tax Office can impose penalties for lodging documents late with them. These include:
(1) Activity Statements;
(2) Tax Returns;
(3) Tax Payment Annual Report;
(4) Pay as You Go (PAYG) Annual Report;
(5) Annual goods and service tax (GST) return;
(6) Annual GST information report; and
(7) Fringe Benefits Tax Return
For small business operators, the penalties can be up to $900 per late lodgement. Most late lodgement is caused because of two reasons:
(1) Disorganized record keeping system; and
(2) Not having the money to pay after the document is lodged.
The Tax Office decides who is penalised and who is not penalised. Usually it is an automatic process after the item is lodged. If you lodge four Activity Statements late in a year, you potentially will waste $3,600 in hard earned after tax money.
REMISSIONS OF LATE LODGEMENT PENALTIES
There is no guarantee that the Tax Office will remit penalties at will. Usually they will only remit penalties because of special circumstances and not having the money to pay is not an acceptable reason.
THE LESSON TO BE LEARNT
Penalties are made to help businesses keep their records up to date. Lodging on time can help you make better financial decisions regarding the future direction of your business.
If you need assistance with any taxation/accounting issues, including record keeping for your business, contact Walker Pender Group today.