# ATO: Late Lodgement penalty



## awg (28 July 2009)

Good news first, they have annulled it.

Took me less than 5 minutes on the phone, to convince the ATO to waiver the late lodgement penalty.

I lodged my 07-08 personal tax return in the last few days of June 09, and they hit me with a $550 late lodgement penalty.

First time I have been ATO fined, although have been late before.

I lodge via an accountant, and thought I had till 30 May 09, but apparently if you were late the year before, you have to lodge by 31 October.

My tax affairs are complicated, and I had medical issues around lodgement deadline time.

I must say the ATO operative was most pleasant, and waived the fine and issued me with a receipt number. A bouquet to her

I still have to talk to my accountant about a discrepancy I seem to have.

My message to people is; if you have a penalty applied, please be aware there are various levels of appeal to have it waived or reduced.

I didnt think it would be that easy, I did not even have to provide written evidence

A similar thing happened when we got flooded and had no power for 6.5 days...Centrelink knocked us back on the "Disaster Relief Payment", after talking to my wife on the phone.

I appealed, and they reversed the decision, over the phone, just like that, amount was over 3k.

I have had a few fines and penalties reduced over the years, a few hours research and work can save you plenty


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## Prospector (28 July 2009)

Great news awg!  I have found the ATO to be quite helpful too; sometimes their phone operators stuff up; but they do take notes.  So when our issue progressed further up the line, the Team Leaders could see why the problem had occurred and how the info they provided was incorrect, and so they resolved the problem.

Also, when our accountant forgot to include my partners Bank Account interest a couple of years ago, but did include mine (we had provided them with the info, but it was a complicated return with CGT and sale of property and we just didnt see the omission) they even waived the penalty.

I reckon that the ATO have 'good' and 'bad' flags against people according to their history; they realise that mistakes can be made and if you have been given a 'good flag', then mistakes are forgiven.

Last year they did something strange though; it was my son's first tax return (he only got his TFN that financial year) but they kept asking for his previous tax return even though he was only in Year 11 then and had not received any income.  They persisted and it wasnt until I provided the very first letter with the TFN notification on it that they realised there was no previous return.  Never did find out why they thought that.

Centrelink on the other hand.......My son is currently applying for Youth Allowance.  His first claim was knocked back last financial year because the year before that he earned too much; yet the rules state you have to earn that much in order to qualify as independent. Sigh.  So, after having provided reams of paper for that application, when July 1 came round this year, he had to provide it all over again.  They do not keep any info!  This time, they will not accept an employee letter, so in order to prove that last year he did earn income (even though they used it last time to confirm he earned too much!)  he has to provide his last three Tax returns. The info last time was enough to refuse him the claim, but not enough this time to approve his claim. He has only had two tax returns, and he only can provide the second one because he has already done his 08/09 tax through ETax (it was a simple one).  So here we go, once again having to prove he has needed to submit two, and not three returns.


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## cuttlefish (28 July 2009)

awg I lodged and paid mine (via accountant) on 5th Jun 09  (for my 07/08 tax return) and didn't get any penalties.  I think that is the very latest date you can do it by without being penalised and you need to pay any amounts owing at the time of lodgement.  I did get hit with a few thousand in interest charges but thats only to be expected given that I should probably have been PAYG'ing amounts throughout the year.


Are you saying that because you lodged the 07/08 one late you now must lodge before Oct 30th 09 for your 08/09 return even if via an accountant?


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## awg (28 July 2009)

cuttlefish said:


> awg I lodged and paid mine (via accountant) on 5th Jun 09  (for my 07/08 tax return) and didn't get any penalties.  I think that is the very latest date you can do it by without being penalised and you need to pay any amounts owing at the time of lodgement.  I did get hit with a few thousand in interest charges but thats only to be expected given that I should probably have been PAYG'ing amounts throughout the year.
> 
> 
> Are you saying that because you lodged the 07/08 one late you now must lodge before Oct 30th 09 for your 08/09 return even if via an accountant?




Your situation raise some issues Cuttlefish.

My understanding is 30th May is the deadline via Acc.

With the $900 stimulus bonus, to receive AT ALL, the cut-off date for lodgement was 30 June.

I lodged on 26th June, even to and fro-ing to my accountants home on a Sunday!

The ATO told me, if you lodge late, then you should lodge next year by 31 October...I dont believe them though, and am waiting on a call back from my acc to clarify that, and other matters.

I have lodged late on several occassions, including once when I owed  $75,000, no penalty or fine!..but I had advised them that there was huge complexities relating to a property development, and I subsequently lodged an amended return, as all the costs and profits were not finalised until a long time after I sold out.

In respect of the fact you have been charged Interest Charges, as you say you should have been PAYGing, I would definitely look into that.

It was my understanding you have to lodge, then they tell you the correct method to remit tax for the SUBSEQUENT periods.

I will be asking my Acc about that, as my wife has become self-employed, has payed no PAYG for 08-09, but has the money set aside in her account.

My Acc told me they will notify her to pay Quartely upon receipt of her 07-08 ( now done)..she started in 07-08.


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## kincella (28 July 2009)

there are extensions if you were in a flood area, or affected by bushfires, or been hospitalised for 2 weeks, and your accountant could have requested further extensions for his workload, if he had known what was going to hit him...most were unaware of the deluge that took place in the last 2 weeks

all those taxpayers suddenly wanted to claim the bonus


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## ajjack (28 July 2009)

Yes I also lodged my return last week in June.
Received a letter last week warning about failure to lodge on time.
However on this occasion the Commisar has decided not to charge
a penalty.  A few days later received the assesment with a note saying 
there is tax payable and due 21 Nov 2008 (?)

Any stimulis may be paid after receipt of tax owing.

There is a Taxpayers Charter which outlines your rights and obligations
at www.ato.gov.au


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## awg (28 July 2009)

People dont realise that they have access to the Administrative Appeals Tribunal, in almost all matters of Commonwealth decisions.

Frequently, an adverse decision will be imposed, either automatically, or by a junior official in an agency.

The initial decision is subject to appeal/review, at at least 2 levels internally.

Then the AAT, it is free, and they will consider all aspects of the case, not just the regulations that bind the original decision makers.

I have had several traffic fines reduced, by writing to the court, and asking them to reduce the standard fine, as I considered my offence to be at the lower end of the scale, but I was being fined the standard amount ( and other extenuating circs, provide as many reasons as you can think of, they must consider them all)...no need to turn up in court, just make sure you send your info by registered letter


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## cuttlefish (30 July 2009)

awg said:


> Your situation raise some issues Cuttlefish.
> 
> My understanding is 30th May is the deadline via Acc.
> 
> ...





Cheers awg.  Maybe the interest charge is just on the interest between the normal payment date and the date I finally lodged and paid.  Either way I expected some interest charges though so I'm not complaining.


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## Krusty the Klown (30 July 2009)

Whoever said the ATO was like the Spanish Inquisition? 

I think the ATO have finally realised that if they are nice to people, the same people will stop being nasty to them.


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## awg (30 July 2009)

cuttlefish said:


> Cheers awg.  Maybe the interest charge is just on the interest between the normal payment date and the date I finally lodged and paid.  Either way I expected some interest charges though so I'm not complaining.






Krusty the Klown said:


> Whoever said the ATO was like the Spanish Inquisition?
> 
> I think the ATO have finally realised that if they are nice to people, the same people will stop being nasty to them.




I dunno about that, I got a good one


Cuttle, my accountant has told me I am now on October 31 lodge for next year, was for this year as well, only I didnt know!

So you better check, they can look on the ATO portal and tell you right away.

Would definitely clarify exactly why you owe, and attempt to negotiate a reduction, that is the key, you must be able to negotiate with them, I think the Debt Recovery staff are more experienced, in general.

They have heard it all before, but I am even surprised myself sometimes, just how easy it is to get a reduction in debt, so long as you go about asking in the best way.

Have had success with Insurance situations, by negotiation


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## fodder-oz (30 July 2009)

Oops nice thread. I am waiting to hear back on my 07-08 tax which i logged near june 30 09 just before the cut off for my 600 stimulus. The only thing that i hope works in my favour is i am due to be owed 2k from the ato due to paying payg extra tax when i was renting my place out which i am living in now for 2 years. Also lodged my 06/07 tax which i owed 2k on so i guess i am going to get fined for that.

It seems the amount you get fined differs from people. At least i can try and appeal it somehow, i hope 

I won't lodge this years tax late tho, as im sick of seeing money go out into a black hole for no benefit of me 

Btw: how long does it take to get the stimulus money seeing some of lodged around the deadline?


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