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10 Apr 1414 On ATO payment arrangements

Member 29 writes:

"Taxpayer had entered a payment arrangement in February 2013 to pay his 2011/12 tax over 12 months. ATO acceptance letter was received showing 12 payments of $1,881 per month commencing

March 2013 and a final payment of $1,062.97 to be deducted on 11 March 2014.

Lo and behold the ATO again deduct $1,881 on 11 March 2014 even though the account balance was only $1,037.08 and, under the payment arrangement, it was scheduled for only $1,062.97 to be paid by direct debit on that date.

Consequence is that the account was overpaid and in credit by $843.92; however, the taxpayer’s 2012/13 ITR was processed on 20 March 2014 with tax payable (with a due payment date 5 June 2014),

hence we can’t even request a refund of the extra amount erroneously deducted from the taxpayers account by the ATO.

One would think that the ATO would have a system to schedule the amounts to be deducted in line with the schedule of payments set out in their letter plus have the system check the taxpayer’s account and if the balance owing is less than the scheduled payment, only transfer the balance owing.

Of course we have to waste our time writing to the client to explain the ATO’s incompetence."