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Australia Warns Large Taxpayers On Steep Non-Filing Penalties

by Mary Swire, Tax-News.com, Hong Kong

12 October 2018


The Australian Taxation Office has warned the country's largest corporate taxpayers that "failure to lodge" penalties, which were increased 100-fold from July 1, 2017, apply to all form types.

In an October 3, 2018, statement, the ATO said: "While applying failure to lodge penalties for significant global entities (SGEs), we have received feedback that some people are unaware that the increased penalties for SGEs apply to all form types. To avoid the increased failure to lodge penalties, SGEs need to ensure that all of their reporting obligations are lodged on time. The increased penalties are applicable to all approved forms, including but not limited to:

  • income tax returns
  • fringe benefits tax returns
  • activity statements
  • pay as you go (PAYG) withholding annual reports
  • country by country reporting
  • general purpose financial statements."

"We encourage all SGEs and their agents to review their reporting obligations and lodge on time to avoid failure to lodge penalties ranging from AUD105,000 (USD74,100) to AUD525,000."

"If you are unable to meet your lodgment deadline due to exceptional or unforeseen circumstances, you should contact us to request a deferral as soon as you become aware you may miss your deadline."

Also from July 1, 2017, administrative shortfall penalties were also doubled for SGEs, chargeable where an SGE makes false or misleading statements to the ATO.

A significant global entity is either: a global parent entity with an annual global income of AUD1bn (USD755.3m) or more; or a member of a group of consolidated entities for accounting purposes where one of the other group members is a global parent entity with an annual global income of AUD1bn or more.

The penalty hikes were announced as part of a "tax integrity package," aimed at increasing oversight of companies' international tax affairs.

TAGS: tax | accounting | fringe benefits | Australia | transfer pricing | penalties | individual income tax | Tax

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