Remission of Penalties:

The ATO imposes different forms of penalties for non compliance with taxation liabilities. The ATO imposes an administrative penalty as opposed to criminal or civil penalties which can only be imposed by the courts and justice system. The ATO may impose these penalties if you have made a false or misleading statement, made material omissions in your disclosures, failed to take reasonable care and diligence in managing your taxation affairs or if you have been involved in taxation fraud or evasion. However, if a penalty has been incorrectly or unreasonably imposed upon you, there may be grounds for objection, review or appeal. If you are successful you may be able to have these penalties remitted. Our full service integrated practice of talented lawyers and financial advisors may be able to substantially assist you in any Remission Application you wish to make with the ATO.

The ATO can impose certain penalties in accordance with the broad body of taxation law. You may be liable for a penalty for certain conduct such as under-reporting of income, over-claiming of deductions, delaying or avoiding paying a tax liability. You may be party to an illegal taxation avoidance scheme, have been delayed in meeting your taxation obligations, have a disputed debt that remains unpaid or made a reporting error.  Professional legal advice with respect of Remission of Penalties by a Taxation Lawyer may be beneficial to ensure that you are fully briefed on your rights, any grounds of review and any remission available.

The process of requesting a review of any penalty decision is done over the phone or in writing. In some situations the only way you can pursue remission is through the objection process which involves completing the appropriate forms with supporting documentation and signing a declaration. The ATO then reviews the facts and evidence that you provide. This application is then reviewed and processed and this can take up to eight weeks. If you disagree with that decision, you can apply for an independent external review. A skilled Superannuation and Taxation Lawyer may be able to actively assist you in this often complex and detail orientated process.

The ATO considers a number of factors in exercising its discretion to impose a penalty or taking other action to enforce compliance. This includes examining your compliance history, making an assessment as to whether tax was deferred or avoided; if there are special circumstances, the reasons for the increased tax (or reduced credits) that brought about the imposition of penalties, whether discovery was due to voluntary disclosure or investigation and your attitude towards complying with the tax laws. In considering these factors the ATO will then make a determination of whether or not the penalty should be reduced or remitted. Specialised and tailored advice from one of our Taxation Lawyers can be hugely beneficial throughout this process.

If you would like further information regarding Remission of ATO Penalties or wish to seek advice or assistance in such matters please do not hesitate to contact us by telephone on (02) 9233 4048 or by email to info@navado.com.au and arrange an appointment today. 

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