Taxation Question?!

[BluesBabe666]

A friend of mine used to do her own tax return... no big deal, heaps of people do - she isnt in a high earning bracket, doesnt need to claim stuff, all that jazz. However, due to pure laziness, she hasnt put her tax return in since 2000 i think....

She's now started to stress about it. I've told her that her best option in my opinion is to take the problem to an accountant, even if she has to pay for them to do the groundwork for her. I am pretty sure she will get a fine, but i dont know...

Anyone got any ideas? I have a feeling at one stage she will have had to pay tax and not get a return, dont know for sure though... so i think that might make it worse?

Also, if she does have to pay a fine, does anyone know if she can pay it in instalments? She is a goose and starting to stress big time, so i thought i'd try find out for her..

 

[Frodo]

If it's simple then dont bother with an accountant. It will just cost her money. Phone the ATO up and explain. They will tell her what to do. If there is back tax to be paid she will have to pay it off with interest. They will accep[t installments if needbe. The fine will be between 0 and 250% of tax not paid depending upon the reason.
Think up a good one, like she gave it to her Dad to do and thought it had been done and only just found out that he forgot. Playing the dumb blonde usually works unless the tax guy is a hard nosed female.

ps Dont forget to add $300 each year for work related expenses, they don't have to be proven.

 

[BluesBabe666]

I think mostly she is going to struggle remembering and being able to get her group certificates from the people that she worked for all that time ago... luckily she is a dumb blonde so she may well be able to play that card!!

Thanks for those tips Frodo, i'll pass it on!

 

[Frodo]

Originally posted by BluesBabe666
I think mostly she is going to struggle remembering and being able to get her group certificates from the people that she worked for all that time ago... luckily she is a dumb blonde so she may well be able to play that card!!

Thanks for those tips Frodo, i'll pass it on!

Then she has an excuse that she was unable to get copies of group certs. Employers MUST keep copies and give copies on request. The ATO will instruct the employers to provide copies.

 

[Rooboy 34]

Originally posted by Frodo
Dont forget to add $300 each year for work related expenses, they don't have to be proven.

Not exactly true Frodo - you don't need receipts for the first $300 of deductions. However, once you reach $301, you need to be able to prove the whole lot...

Bluesbabe - There is no need to go to an accountant, but it might be advisable to go see a Tax Agent such as H&R Block or ITP. The agent will be able to prepare all 3 returns in one hit which should save on $$$. If she has not earned any income from sources other than her employer, she should get a refund which will mean that she won't get fined. If she does have tax payable, then she have to pay interest on the outstanding amount from the date it was due to be lodged - the 31st October of the appropriate year. And tell her not to get too worried - we regularly get people coming in with 6 & 7 years of returns to be done!!!

 

[peterh_oz]

Originally posted by Rooboy 34
And tell her not to get too worried - we regularly get people coming in with 6 & 7 years of returns to be done!!!

Who is "we"? Are you ATO or H&R?

I'm in the same boat

 

[Former]

Coming in late with this one, but some years ago I hadn't done a tax return for about three years.

I went to H&R Block with a folder full of receipts and Group Certs and did them all at once. ATO didn't blink in sending back a cheque within a few weeks.

 

[Rooboy 34]

Originally posted by peterh_oz
Who is "we"? Are you ATO or H&R?

I'm in the same boat

We are a Chartered Accounting Firm who prepare Accounts & tax returns primarily for business', but we also have a small % of individuals as well...

 

[Former]

Originally posted by peterh_oz
Who is "we"? Are you ATO or H&R?

I'm in the same boat

From my experience you should just get everything together and book a meeting with a tax agent.

They usually have a row of cubicles or divided desks with someone at each desk to go through everything on the spot with a customer, and they give you a printout of what they have submitted. In and out in an hour or less.

Three years worth cost me about $80 all up (this was a while ago). I got a few thousand back so it was well worth the time for me.

In my experience the ATO aren't really fussed with you unless they decide to audit people in your industry or you have a big debt of, say, $100,000+.

With personal tax returns they just wait and wait until it mounts up and you appear on their radar. Then they start asking questions, which can usually be cleared up by sending in the outstanding returns.

But the best course for your average PAYG tax payer is to put returns in on time each year.

 

[SMOO]

What?

What is tax?