Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ATO proposal gains momentum

The Institute of Public Accountants has thrown its support behind a recent proposal dealing with small business penalties, suggesting the previous regime was too “heavy-handed” in parts.

Tax&Compliance Reporter 03 October 2016
— 1 minute read

As reported earlier this month, the ATO is proposing that for certain small businesses and individual clients, it will provide 'one chance' before applying penalties for false or misleading statements due to failure to take reasonable care in income tax returns and activity statements.


"The 'one chance rule' proposal is a clear sign that the ATO recognises that in the past, it may have been too heavy-handed on taxpayers trying to do the right thing, by not taking into account individual circumstances" said IPA chief executive officer Andrew Conway.

"The reality is that the ATO remits a substantial number of penalties down the track after they are disputed, which normally involves a great deal of time, effort and stress,” Mr Conway said.

"Not levying the penalty in the first instance will result in a reduction in the administrative burden facing individuals and small business,” he added.


ATO proposal gains momentum
image intro
accountantsdaily logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting.

Limited tickets left. To secure your place today, visit accountantsdailystrategyday.com.au.