What Penalties Might A Business Face For Incorrect Tax Filing?

By Author: Fore Front Business Solutions
Total Articles: 18
Comment this article

Failing to meet your tax obligations as a business owner in Australia, can result in hefty fines and penalties, and 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 taxation offences 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 penalty?
You’ll be notified by the ATO in writing if found liable for a penalty in relation to non-compliance with tax obligations, and the document will include the following details:

Why the penalty is being imposed
- How much the penalty is for
- The date in which the payment must be paid by – this is at least 14 days after you’ve been given notice)

Do you need help from a tax professional?
If you’re concerned that your taxes aren’t being recorded properly, or are struggling to understand what you may be entitled to deduct, for example, then you would almost certainly benefit from the expertise of a tax professional. Penalties and fines are serious matters, and aside from the financial burden, it doesn’t bode well for a business’s reputation, either.

If you’ve been found guilty of committing some sort of tax offence by the ATO, then you’ll need a tax professional to help defend you against those allegations. Either way, if you just need help with your taxes, or have been caught in violation of your tax obligations, a tax professional such as an accountant can be immensely helpful.

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.

At Forefront Business Solutions, we are Melbourne-based CPA accountants and business consultants that help small and medium-sized business owners increase their profits. We do this by not only legally minimizing their tax, but assist them in creating effective marketing, sales, and profitability systems in their companies. We offer a complimentary review of your taxes and business profitability. If you are looking for an accountant in Melbourne, contact us to arrange your free Strategic Profits action plan.

If you are looking for small business accountant in Melbourne, please visit the website https://forefrontbizsolutions.com.au