The Tax Office has outlined important questions for tax agents to consider before applying for lodgment deferrals for their clients.
In a recent update, the ATO has highlighted some important questions to help tax agents determine whether requesting a lodgment deferral is the correct decision for their clients.
Are the circumstances exceptional or unforeseen?
The ATO reminded tax agents that if they, their practice or their client experiences circumstances such as a serious illness, unexpected staff absence, a natural or other disaster, they may be eligible for a lodgment deferral.
"[However], you should not request lodgment deferrals if your clients simply haven't provided information with enough time for you to prepare and lodge by the due date," the ATO said.
If applying for a lodgment deferral, tax agents will need to include detailed information to enable the ATO to asses the request.
This must include what exceptional or unforeseen circumstances the tax agent, client or practice are experiencing, when those circumstances occurred and whether they are ongoing or when they were resolved. The application should also include how those circumstances affect their ability to lodge by the due date and why they're deferrals after the due date, if applicable.
Does the client have a 15 May due date?
The ATO also reminded tax agents that they don’t need to request deferrals for tax returns due on 15 May if their clients are eligible for the 5 June concession date.
"The concession allows individual, partnership and trust tax returns to be lodged by 5 June without penalty, provided that any payment required is also made by this date," it said.
"For companies and super funds (excluding large and medium taxpayers and head companies of consolidated groups), the concession applies where both the prior year and the current year return will be non-taxable or result in a refund."
Do you need help to get your lodgment program back on track?
The ATO said that if unforeseen circumstances affect their whole practice, or if tailored support would be more appropriate, a supported lodgment program that provides tailored solutions may be more suitable.
"We'll work with you to tailor solutions based on your circumstances. Those solutions may include identifying and prioritising overdue and upcoming lodgment obligations, removing taxpayers who you are not actively representing from your client list and applying lodgment deferrals, or in some instances, suspending lodgment compliance action," the ATO said,
"We recommend you request a supported lodgment program as early as possible."
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
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