Question

What action can the ATO (Australian Taxation Office) take if a taxpayer fails to correctly report or pay by the due dates (In Australian Accounting Environment) (Please type up your answer)? Discuss in 80 to 100 words.

Answer 1

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Australian Taxation Office like any other taxation office in the world would like that the taxpayer correctly report and pay by due dates. So if any of the requirements are not fulfilled, there are certain penalties which are applied on the assesse.

Basically,

1.     A General Interest Charge is applied on the unpaid tax liability from the due date till the date it is paid.

2.     A Shortfall Interest Charge is applied when additional tax liability arises on amendment of assessment.

3.     Penalties are imposed for various different incorrect reporting such as Failure to Lodge (FTL) penalty etc.

Australian Taxation Office like any other taxation office in the world would like that the taxpayer correctly report and pay by due dates. So if any of the requirements are not fulfilled there are certain penalties which are applied on the assesse.

Basically,

1.     A General Interest Charge is applied on the unpaid tax liability from the due date till the time it is paid.

2.     A Shortfall Interest Charge is applied when additional tax liability arises on amendment of assessment.

3.     Penalties are imposed for various different incorrect reporting such as Failure to Lodge (FTL) penalty.