Ignore this phone call warning, and you could face massive $1,650 fine!
- Replies 4
As the end of the financial year approaches, many Australians are paying attention to tax matters. Still, a recent warning from the Australian Taxation Office (ATO) has highlighted the importance of staying on top of your tax obligations throughout the year.
The ATO has been actively reaching out to individuals with overdue tax returns, and the consequences of ignoring these communications can be costly.
Failing to meet tax obligations risks penalties and could lead to interest charges that add up over time. As the ATO continues to track overdue returns, taxpayers must stay informed and respond promptly to avoid further complications.
Eire Consulting founder Jenny Theodore has reported that numerous Australians have received phone calls or voicemails from the ATO regarding their overdue tax returns.
The deadline for lodging last year's tax return was 31 October, and failing to meet this deadline could result in penalties of up to $1,650.
The ATO's focus appears to be on individuals with an Australian Business Number (ABN), which includes contractors, business owners, and those with side hustles.
Theodore explained that the ATO leaves voicemails for those they can't reach, requesting a response within two business days.
'From the perspective of the tax office, with a Tax File Number, tax is being withheld from your salary when you are paid, whereas, with ABN, you are generally not paying tax as you are earning income; it is all sort of paid at the end of the year,' she said.
'So it’s likely that they’re targeting people with ABNs on the basis that they probably will have a tax debt to settle.'
An ATO spokesperson has confirmed their efforts to engage with taxpayers who have not met their lodgment obligations.
They employ various methods, from SMS and emails to letters and phone calls, and may take firmer actions if necessary.
The ATO acknowledged that sometimes people fall behind on their obligations despite their best intentions.
Receiving a call from the ATO can be intimidating, but Theodore advised that the best approach is to communicate openly with them.
Taxpayers should explain their reasons for the delay and assure the ATO that they are taking steps to lodge their overdue return, whether independently or through an agent.
The ATO encourages early engagement to minimize the risk of penalties.
If you postpone lodging your tax return, you may face a 'failure to lodge' penalty, which is currently $330 for each 28 days the return is overdue, up to a maximum of $1,650.
Additionally, any unpaid tax debt will accrue interest at an annual rate of 11.42 per cent.
Theodore suggested negotiating a payment plan with the ATO to pay off the debt in instalments for those hesitant to lodge due to anticipated tax debt.
'You will pay a bit more but you’re going to pay penalties and general interest charges by not lodging,' she explained.
'So it’s better to be paying off your debt and incurring interest but getting it paid off and getting your tax obligations up to date.'
Most taxpayers can prepare and lodge their tax returns online, with most processed within two weeks.
This convenience, however, has also led to an increase in scams. Some Australians have mistaken legitimate ATO calls for scams, as ATO calls often appear as 'No Caller ID' on phones.
Theodore warned that the ATO would never call from an overseas number, ask for personal details like your Tax File Number or date of birth over the phone, or threaten immediate arrest.
The ATO also advised against clicking on unsolicited emails or SMS links and sharing sensitive information through these channels.
Suppose you're uncertain about the legitimacy of a call claiming to be from the ATO or encountering a potential scam. In that case, you should immediately contact the ATO at 1800 008 540 to verify or report the incident.
In this digital age, being vigilant about the information you share and the communications you trust is crucial. As we navigate tax season, let's ensure we meet our obligations and stay safe from scams.
Credit: TikTok
Have you had an experience with the ATO or encountered a tax-related scam? Please share your story with us in the comments below, and let's help each other stay informed and protected.
The ATO has been actively reaching out to individuals with overdue tax returns, and the consequences of ignoring these communications can be costly.
Failing to meet tax obligations risks penalties and could lead to interest charges that add up over time. As the ATO continues to track overdue returns, taxpayers must stay informed and respond promptly to avoid further complications.
Eire Consulting founder Jenny Theodore has reported that numerous Australians have received phone calls or voicemails from the ATO regarding their overdue tax returns.
The deadline for lodging last year's tax return was 31 October, and failing to meet this deadline could result in penalties of up to $1,650.
The ATO's focus appears to be on individuals with an Australian Business Number (ABN), which includes contractors, business owners, and those with side hustles.
The Australian Taxation Office is pursuing overdue tax returns, with penalties of up to $1,650. Credit: Facebook
Theodore explained that the ATO leaves voicemails for those they can't reach, requesting a response within two business days.
'From the perspective of the tax office, with a Tax File Number, tax is being withheld from your salary when you are paid, whereas, with ABN, you are generally not paying tax as you are earning income; it is all sort of paid at the end of the year,' she said.
'So it’s likely that they’re targeting people with ABNs on the basis that they probably will have a tax debt to settle.'
An ATO spokesperson has confirmed their efforts to engage with taxpayers who have not met their lodgment obligations.
They employ various methods, from SMS and emails to letters and phone calls, and may take firmer actions if necessary.
The ATO acknowledged that sometimes people fall behind on their obligations despite their best intentions.
Receiving a call from the ATO can be intimidating, but Theodore advised that the best approach is to communicate openly with them.
Taxpayers should explain their reasons for the delay and assure the ATO that they are taking steps to lodge their overdue return, whether independently or through an agent.
The ATO encourages early engagement to minimize the risk of penalties.
If you postpone lodging your tax return, you may face a 'failure to lodge' penalty, which is currently $330 for each 28 days the return is overdue, up to a maximum of $1,650.
Additionally, any unpaid tax debt will accrue interest at an annual rate of 11.42 per cent.
Theodore suggested negotiating a payment plan with the ATO to pay off the debt in instalments for those hesitant to lodge due to anticipated tax debt.
'You will pay a bit more but you’re going to pay penalties and general interest charges by not lodging,' she explained.
'So it’s better to be paying off your debt and incurring interest but getting it paid off and getting your tax obligations up to date.'
Most taxpayers can prepare and lodge their tax returns online, with most processed within two weeks.
Theodore warned that the ATO would never call from an overseas number, ask for personal details like your Tax File Number or date of birth over the phone, or threaten immediate arrest.
The ATO also advised against clicking on unsolicited emails or SMS links and sharing sensitive information through these channels.
Suppose you're uncertain about the legitimacy of a call claiming to be from the ATO or encountering a potential scam. In that case, you should immediately contact the ATO at 1800 008 540 to verify or report the incident.
In this digital age, being vigilant about the information you share and the communications you trust is crucial. As we navigate tax season, let's ensure we meet our obligations and stay safe from scams.
Credit: TikTok
.png){kind=icon}
