How to approach the ATO when making a voluntary disclosure
Realising you have made an error in relation to your tax obligations can have unwelcome consequences if the miscalculation is not rectified. A voluntary disclosure is a free choice made by an individual or organisation to disclose to the ATO their true financial position. Making a voluntary disclosure can reduce the level of penalties and interest you owe depending on the level of non-compliance.
The likelihood of facing tax related offences is ever increasing as the ATO hones in on tax avoidance schemes. If an omission has been made in relation to your tax affairs, it is critical that you address the issue early in order to avoid:
• Criminal investigation.
• Extensive ATO audits.
• Serious civil and criminal penalties.
• Significant legal fees.
Generally speaking, the level of penalties and interest will depend on whether your disclosure was voluntary or pre-empted by the ATO in the case of an audit.
A voluntary disclosure can be made in writing, electronically, by phone, or via other methods available in specific circumstances.
The ATO understands that mistakes can be made and is willing to work with taxpayers who make an effort to correct the errors and get their tax affairs in order. Be sure to take the honest approach and make a voluntary disclosure to the ATO before you find yourself being audited.
If you have made an error or omission in your tax affairs it is important to seek legal and accounting advice. Our dedicated tax lawyers and tax accountants can manage any issues you may be having with the ATO. Depending on your circumstances, a voluntary disclosure may or may not be the right option for you or your business. Call us today on 1300 QUINNS (784 667) or visit our website www.alltaxsolutions.com.au and submit an online enquiry.