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‘Contemptuous’ non-lodgement sees director handed $50k fine

Repeated failure to lodge activity statements has landed a company director with a $51,500 fine and conviction.

Tax&Compliance Reporter 06 August 2019
— 1 minute read

Michael George Fotios, the director of private resource company Delta Resource Management Pty Ltd, was convicted and fined $37,500 for failing to lodge five activity statements from 1 January 2016 to 31 March 2017.

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He was also convicted of failing to provide information and documents to the ATO as required by notice. He was fined $7,000 on each of the two charges relating to this failure.

In total, Mr Fotios was fined a total of $51,500 across all seven charges in the Perth Magistrates Court after the magistrate considered his plea, financial circumstances, lodgement of relevant returns and compliance with the information-gathering notice.

The magistrate said due to the history of non-compliance and the seriousness of the offences, imprisonment was seriously considered as a sentencing option; however, the appropriate penalty was applied.

He described Mr Fotios’ non-lodgement and non-compliance as “contemptuous”.

With new laws introduced to deny an income tax deduction for certain payments if the associated withholding obligations have not been complied with, the on-time lodgement of BAS has been highlighted.

“The on-time lodgement of BAS is now even more important than ever, because a failure to lodge the BAS on time may result in a business permanently losing its tax deduction for wages paid,” BDO partner Mark Molesworth said previously.

‘Contemptuous’ non-lodgement sees director handed $50k fine
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