On 14 December 2011, the Australian Tax Office (ATO) sent default assessment warning letters to tax payers who have overdue income tax returns where they had evidence they received taxable income in the relevant financial years.
These letters were titled ‘Default assessment warning’. If the overdue returns were not lodged by 3 February 2012, the ATO will issue default assessments for these taxpayers based on the estimated taxable income included in the letter.
If the ATO issues a default assessment to any taxpayers, he or she may incur the following:
• failure to lodge on time penalties
• administrative penalties of 75% of the tax related liability from the default assessment, after taking into account any pay as you go (PAYG) credit and any other tax credits available (administrative penalties may increase by 20% if tax payers has had a penalty previously applied for a default assessment).
What you need to do
If you receive a letter, make sure you:
• are aware of the impending default assessment and
• lodge their relevant income tax returns ASAP.
If you have received one of these letters do not “sit on it” – action it now!! We can help you lodge you return ASAP. Here at The Quinn Group our experienced team of Tax Agents, Accountants and Tax Lawyers can assist with all your taxation needs and queries. Please submit an online enquiry or call us on 1300 QUINNS (784 667) to book an appointment.