ATO allowances on late lodgement and penalties

Lodgement due date for all tax returns denied

An extension was requested in light of the extra COVID-19-related issues many business owners have worked through, including setting up employees for JobKeeper and accessing the government’s stimulus package.

However the ATO Deputy Commissioner replied: “We recognise and appreciate your efforts to help your clients meet their lodgement and payment obligations over the last few months, and that under the current circumstances there have been additional pressures on the tax profession to assist clients accessing support due to the economic impacts of COVID-19 and the recent bushfires.

“To support you and your clients during these difficult times we have provided automatic lodgment and payment deferrals, put in place in April 2020, and continuing access to a range of other services for tax professionals.

There will be no further changes to lodgement and payment due dates for any obligations due in May and June 2020 that already have automatic deferrals applied.

“However, if clients are unable to meet lodgement due dates during this period; no late lodgement penalties will be imposed for returns lodged by 30 June 2020, you will not lose access to your lodgement program, and you will not be adversely affected in your future dealings with us.

“While the general interest charge will still be applicable, you can apply for remissions and we will take a reasonable approach in assessing any request. If a client is unable to make a payment by the due date, you can also submit a ATO-assessed payment deferral request on their behalf.

“If anyone feels overwhelmed or is behind with their lodgement, we can help. Contact us as early as possible, so we can work with you to find a solution.

The key points from this message

  1. There will be no more blanket deferrals in relation to tax returns for the year ended 30 June 2019.  The above announcement is not a deferral of the lodgement dates of tax returns.
  2. Salisbury Accountants may lodge tax returns for our clients for the year ended 30 June 2019 up to 30 June 2020 without late lodgement penalties.
  3. As this is not a deferral of the lodgement date of tax returns, the General Interest Charge will still apply.  However, the ATO has indicated that it will take a reasonable position in relation to requests for remission of GIC.
  4. Salisbury Accountants can still apply for lodgement deferrals for our clients beyond 30 June 2020.

We have the team here at Salisburys to assist you with your tax return(s) as well as your tax planning in the lead up to 30 June.  If you would like to book in a tax planning session or discuss how we can help you please contact us on 02 6041 3014.