Failing to meet your tax obligations as a business owner in Australia, can result in hefty fines and penalties. In some instances, can even lead to imprisonment. With this in mind, it’s important to recognize the advantages of working with a tax professional to ensure that your business taxes are filed accurately and on time, every tax season.
Administrative penalties are sometimes imposed upon businesses for the following types of conduct:
- Making statements that are false or misleading, or taking a position without a reasonable argument
- Not lodging a return or statement on time
- Neglecting to withhold amounts as required under the PAYG withholding system
- Tax evasion
- Helping others to evade their taxes
- Failing to meet other tax obligations
No business, large or small, wants to have penalties or fines imposed upon them for not complying in any way, with their tax obligations.
What are the most common tax penalties in Australia?
There are variety of taxation offences that any one individual or business owner can be found guilty of, and these range from obtaining a financial advantage, tax fraud, conspiracy to commit tax fraud and tax evasion.
Can you go to jail for not filing your taxes?
By intentionally failing to file your taxes, you run the risk of imprisonment. Just as you do if you lie on your tax return or purposely evade your taxes in any way.
What happens if as a business owner, you’re liable for a tax penalty?
You’ll be notified by the ATO in writing if found liable for a penalty in relation to non-compliance with tax obligations. The document will include the following details:
- Why the penalty is being imposed
- How much the penalty is for
- The due date for paying your fees. (At least 14 days after the bill has been given)
Do you need help from a tax professional?
If you’re concerned about the accuracy and proper recording of your taxes, then a tax professional would be able to help. Penalties and fines are serious matters. Aside from the financial burden, it doesn’t bode well for a business’s reputation, either.
If the ATO has found you guilty of committing some sort tax offence, it’s time to call in a professional such as an accountant who can help defend against these allegations. Whether or not one has committed violations within their obligations towards taxes; having someone on hand just during this period would likely make life easier and less stressful for everybody involved with financial matters.
While your taxes might well be your responsibility, there’s no reason why you should have to shoulder the burden alone. By working with an experienced tax professional – or an accountant who offers a range of taxation services – you can file your return accurately, in a timely manner and aside from avoiding penalties, fines and even jail time, they could help you save money, too.
Don’t be a victim of the ATO this tax season, get one step ahead by hiring a professional to help you get your taxes right.
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