Disputes & Compliance

A letter from the ATO is rarely as bad as it looks – unless it is left unopened. We are registered tax agents, and dealing with the ATO on our clients' behalf is part of the job: catching up overdue lodgements, arranging payment plans, answering reviews and audits, and objecting when the ATO has got it wrong.

Overdue returns and BAS

Unlodged returns do not go away. The ATO can estimate what it thinks you owe, apply penalties for lodging late and, for companies, pursue the directors personally – see director penalties. The way out is the same in every case: get the lodgements in.

We work out which years and periods are outstanding, gather what is needed – the ATO already holds much of the income information – and lodge them in a sensible order. Once you are up to date we can ask the ATO to reconsider penalties where the circumstances support it.

Payment plans

If you cannot pay a tax debt in full, a payment plan spreads it over time and keeps the ATO from stronger recovery action while you keep to it. Interest still applies, so the plan has to be realistic. Plans are harder to get than they used to be, especially for larger debts or after a missed plan. We look at your cash flow, prepare a proposal the ATO can accept and set it up for you for $220 including GST.

Prefer to do it yourself? Our guide on how to set up an ATO payment plan covers what to prepare and the three ways to apply.

Cash flow management for small business covers how to stop a tax debt building up in the first place.

Reviews and audits

The ATO's compliance programs compare businesses with others in the same industry, and a business that sits outside the benchmarks for its industry is more likely to be asked questions – see the ATO small business benchmarks. If you receive a review or audit letter:

• don't ignore it – deadlines in ATO letters matter
• send it to us before you reply, with the return or BAS it concerns
• let us respond – we prepare the answers and the supporting records, and deal with the ATO directly

Objections

If you disagree with an assessment, a penalty or another ATO decision, you can usually object. An objection has to be lodged in writing within a time limit, set out the grounds and include the evidence. We review the decision with you first – some are worth challenging and some are not – and where there are grounds we prepare and lodge the objection.

Staying out of trouble

Most ATO problems start with records that are behind, not with anything deliberate. Regular bookkeeping, BAS lodged on time and a tax return prepared from good records are the cheapest compliance there is.

Questions people ask