Why Filing Taxes Has Become The Need Of The Hour?


As your tax advisor in Reading would tell you, you must lodge a tax return with ATO (Australian Taxation Office). However, there are certain situations where you may not need to follow this process. For example, right now if you are earning less than 18,200 dollars and are not paying any taxes you need not file a tax return with ATO. However, you still have to provide ATO a non-lodgment advice. This is basically to inform ATO that you do not have to file. This also makes sure that it does not mark you as someone who has an outstanding return. 

If you do not lodge this particular advice ATO would automatically assume that you are supposed to lodge and will take action against you to make sure you lodge.

The Fine for Not Lodging a Tax Return 


In these cases, you would first be served an FTL (Failure to Lodge) by ATO. This is especially when you have not filed your tax return within the due date. At present, for 28 days each, you get one penalty unit. This can go up to 5 units at the most. Each penalty unit currently carries a fine 210 dollars. This means that at the most you have to pay a fine of 1050 dollars. Under normal circumstances, this penalty is applied on an automatic basis. However, if you are due a refund or if your return has nil results this will not be applicable.

Penalties for lodging a late tax return


Your chartered accountant in Reading should be able to guide you with this. If you have not lodged returns for several years in spite of collecting penalties ATO can issue several default assessments for the same. ATO has data related to your income and it is based on such data that these assessments are performed. Since these are estimates there is always a chance that they would be incorrect. They would more often than not show a higher tax liability. 

Conclusion


In case if you are wondering whether you would be prosecuted by ATO for failing to lodge a tax return you should know that it is not common. However, this does not mean that it would not happen. There is always a chance that ATO would penalize you in these cases. If you are convicted you may have to spend 12 months in prison or pay a fine of 8500 dollars.   
Location: Fuchsia Grove, Shinfield, Reading RG2 9ET, UK

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