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Requests for lodgment deferrals that are generic or limited in information are likely to be denied, the ATO has warned practitioners.
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ATO cautions tax agents on ‘cut and paste’ lodgment deferrals
02 May 2024
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The Tax Office has stressed the need for tax professionals to provide sufficient information for lodgment deferral requests that explain the need for the additional time to lodge.
“We see a significant number of requests that are either very limited information or very generic or something that we can quite clearly see has been a cut and paste,” the ATO said in a recent webinar.
“It’s critical for us that we get that information and that we get it in a manner that’s understandable.”
The ATO warned that where there is insufficient information provided in the request, it is difficult for the staff processing these requests to grant the deferral.
“The staff processing these requests don’t understand your circumstances and if there’s insufficient information or reasons, it may actually result in that deferral request being declined,” it said.
“I can’t stress enough the importance of providing that information that will enable someone who doesn’t know your business to make that call.
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“If you’re requesting a deferral you need to detail the reasons as to what has prevented you from making that lodgment on time.”
The ATO also outlined that tax agents don't need to request a deferral where it is simply to achieve a better on-time lodgment performance.
“I just want to reinforce that lodgment performance is just a benchmark, it’s not something that we take action against,” the Tax Office said.
“It’s not something that you should be concerned about if you don’t meet that benchmark.”
The regulator also advised tax agents that it may decline the deferral request if the client has a record of late lodgments including poor compliance with deferred due dates.
It may also decline the request if the Tax Office has started compliance action with the client.
In cases where agents are seeking to request a large number of deferrals, the supported lodgment program may be the more appropriate channel for them to go through, the ATO added.
The Tax Office said that there has also been confusion among tax agents around how the 5 June concessional due date works for returns that are due 15 May.
“The concession applies to clients that had an original due date of 15 May. It does not apply to obligations that had a due date prior to 15 May. It's available to individuals, partnerships and trusts.
One of the conditions for 5 June is that if there’s a payment attributed to that return, it must be paid by 5 June.
Lodgments made by this date will be considered on time under the lodgment program framework.
“You don't need to apply for a lodgment deferral to receive the 5 June concession date,” the ATO said in a recent update.
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