What Happens When You Do Not or Incorrectly File Your Income Tax
Millions of Australians stand in long queues to file tax returns come collection time. It is everybody’s obligation; it is what every law-abiding citizen should do. But have you ever wondered what will happen if you fail to keep on top of your taxes?
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Only one thing is sure to happen, you will be liable to penalties or interest charges. When the taxman finds an error or an omission, he will take into consideration relevant circumstances when deciding what action to take. These would include your compliance history, the reasons for discrepancies, and your attitude towards abiding with the regulations.
Furthermore, the type of penalty that will be imposed is classified in two: administrative and civil or criminal. The punishment can be applied on shortfall amount, late payment, and unpaid tax obligations. It will be computed on a compounding basis with regards to the outstanding payable amount. It was primarily intended to encourage individuals and businesses to pay by due date and to compensate the government for the negative effects of late payments.
If you want to avoid these penalties consider acquiring electronic tax application or, better yet, hire 123 Bookkeepers & Accounting.