There are a number of reasons to lodge your Income Tax Return on time! Firstly there are the obvious reasons which include avoiding Tax Office late lodgement penalties, we have recently viewed penalties of up to $900 and Activity Statement penalties up to $1,700 per outstanding lodgement.
Another reason for lodging on time and paying your tax liability is to avoid the Tax Office imposed General Interest Charge on liabilities (tax payables). The ATO issues General Interest Charge at a rate of 9.28%. This interest rate is generally far greater than a home loan interest rate and can quickly increase the balance of the amount you owe.
Other than the penalties, as of recent times we have noticed a lot more financial institutions are asking for current copies Income Tax Returns for loan applications or loan renewals to support the amount of income which they are basing a loan or credit application on.
If you currently do not have the available funds to pay out the full tax debt another service we offer as qualified Tax Agents is negotiating payment arrangements with the Tax Office on your behalf. This can mean that you could pay off the debt in more manageable smaller payments.
If you having issues dealing with your lodgements and Tax Office debt, call us to arrange a confidential meeting to discuss getting your lodgements up to date and putting a plan in place to deal with the debt.
Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.
We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.