Did I miss something? This might be the question that strikes your mind right after lodging your tax return. Maybe it’s an overlooked payment, a suspicious figure, or an incorrect deduction. You might then wonder: What if I made an error? If this resonates with you, you are not alone. Each year, thousands of Australians find (sometimes weeks or months after submission) that there was an issue with their tax return. The good news is, it’s still possible to correct it.
Penalties for making false or misleading statements
- False or misleading statement penalty – shortfall amount: The penalty will be imposed if you make a misleading or false statement (e.g. in a tax return, amendment request, or activity statement), which leads you to have a shortfall amount. Therefore, it’s always suggested to get help from a professional tax return accountant to ensure accuracy in tax return lodgment.
- False or misleading statement penalty – no shortfall amount: This penalty is imposed if you make a misleading or false statement (e.g. in an object, during an audit, or private ruling request), which doesn’t lead you to have a shortfall amount.
- Penalty for taking a position, which is not reasonably arguable: If you treat a petroleum resource rent tax (PRRT) or income tax law as applying in a manner that is not reasonably arguable, and the shortfall amount surpasses a certain threshold, a base penalty of 25% of the shortfall amount will be imposed.
- Penalty for not making a statement: A penalty of 75% of the tax-related liability will be imposed if both of the following apply:
- You don’t lodge a document required to establish your tax-related liability by the day it is required to be provided.
- In the absence of that document, the ATO determines your tax-related liability.
When and how can you amend your tax return?
To amend your tax return to correct a mistake or add more information, you can file a request online, by paper, through your tax accountant or by sending a letter to the ATO. You have to wait until your original tax return is processed before submitting your amendment. It might be easy to file or amend your tax return through an accountant. You can also get help from an accountant Melbourne to ensure you have lodged or amended your tax return accurately. Sole traders and individuals can amend their tax return if they:
- Have made an error
- Forgot to add something
- Had a change in situation after lodging.
What happens after lodging an amendment?
There are different options to lodge an amendment, such as:
- You can lodge an amendment online through the ATO online. Amendments through online services may take about 20 days to process.
- If you request an amendment through a paper amendment form, it may take up to 50 business days to process.
- If you use a registered tax agent, they can help you complete an amendment to your tax return. A tax agent can complete and lodge an amendment electronically using the Practitioner Lodgment Service (PLS). An amendment to a tax return can be filed using the PLS, even if the original tax return or previous tax return amendment was not made through the PLS. It may take up to 50 business days to process.
- If you request an amendment by sending it through a letter, then it may take up to 50 business days to process the request.
Sometimes, it’s not clear whether you should request an amendment or wait for some time. If you are unsure about the amendment, it would be worth getting advice from experts.
Conclusion
If you have made a mistake in your tax return, it’s suggested to lodge an amendment. However, if you are unfamiliar with the tax return amendment process, you can seek help from Reliable Melbourne Accountants.