As the end of the financial year is fast approaching, it is important to keep in mind the upcoming lodgment and payments dates in order to be compliant with the Australian Tax Office.
Upcoming lodgements
June 2014 Tax Instalment Compression
In circumstances where an entity lodges its 2013 Income Tax Return which results in tax payable, the Australian Tax Office (ATO) may require the entity to pay Quarterly Tax Instalments. This is essentially a pre-payment of the 2014 Tax liability.
The ATO will require the taxpayer to pay an amount equal to the 2013 Tax Liability in the June 2014 Business Activity Statement less any previously paid Tax Instalments for the year. This will be due 25 August 2014 if lodged through a Tax Agent. This can be an enormous burden where both the 2013 Tax Liability and June 2014 Tax Instalment are large tax liabilities.
It is important that if you have a large 2013 Tax liability, we review your business performance before the end of the financial year to see if we are able to vary down the June 2014 Tax Instalment and save you paying unnecessary tax.
Late Lodgements
Where a Statement or Return is lodged late the ATO may impose a Failure to Lodge penalty unit of $170 per 28 days up to a maximum of 5 penalty units. In addition the ATO may also apply general interest charges of 9.63% to any late payments.
If you have difficulty in meeting your tax obligations, we are in some circumstances able to negotiate payment arrangements with the ATO. Please let us know if we can help you.
Other Lodgements
Please note that the 2014 Annual Reconciliation of Payroll Tax and Workcover will also be due for lodgment and payment in July 2014.
