If you have overdue tax returns from previous years, we know that it can become more difficult to even think about catching up and lodging them.
What will the ATO do if I don’t lodge a tax return?
Firstly, the ATO will issue you a Failure To Lodge (FTL) penalty if your tax return isn’t lodged by the due date. Significant fines can be applied the longer you delay the lodgement of your return.
Are there other penalties for lodging a late tax return?
Where fines have failed get you to lodge a return, especially where you have several years outstanding, the ATO can issue you with one or more default assessments. This is basically an estimated assessment of your income, based on data held by the ATO.
As these are estimates, they’re rarely correct and often show a higher tax liability than you would actually owe as they don’t take deductions into account.
Will I get prosecuted if I don’t lodge a tax return?
Even though it’s not common, the ATO can and does prosecute for failing to lodge tax returns. The maximum penalty which can be applied on prosecution is $8,500 or imprisonment for up to 12 months.
What should I do if I haven’t lodged my tax return?
If you’ve got one or more tax returns outstanding, the ATO will eventually catch up with you.
So getting your late returns done before the ATO comes after you is the best way to minimise any risk of fines and prosecution.
Our experienced tax agents can further help you minimise this risk by lodging a late tax return on your behalf. We can advocate for you if there were good reason why you were late lodging.
Getting your tax returns up to date can also help you catch up with entitlements such as superannuation co-contribution and family tax benefits. If we find out that you didn’t need to lodge a return for some of your outstanding years, we’ll submit a non-lodgement advice on your behalf.
So don’t hold off any longer. Contact us today and let us take the pressure off you.