21 Apr 11 On ATO's inconsistent procedures
MEMBER 65 writes:
"I am sure that our recent discussion with the ATO is no different to other conversations/arguments/disagreements, but as TAXVINE is now the central depository of all ATO quirks here goes.
The situation, husband and wife are both equal partners of a primary producing partnership. All 2010 tax returns lodged on the same day, taxable income is give or take a few $ exactly the same. 2011 Instalment activity statements for the March quarter are issued on the same day. Wife has her 3rd quarter IAS calculated on the 2009 tax return and the husband on the 2010 tax return. The income in 2010 was lower than 2009. Needless to say the wife's quarterly PAYG is 10 times the size of the husband's. Why? Calls to the ATO to have them adjust falls on deaf ears. Yes we can and will vary the taxpayer with a reduced quarterly IAS however if the estimate is wrong I fear that a fine or GIC may result if the estimate is found to be incorrect.
On a slightly different note, could The Tax Institute via the many liaison committees that it sits on with the ATO request/demand that the ATO amend all quarterly Activity Statements for at least the first quarter so that have the same extended lodgment deadline despite the type of IAS they are. I refer in particular to the Instalment Activity statements where the tax payer has accepted the Commissioners instalment calculation in the previous year and therefore has only 28 days after the quarter end to lodge the statement. This is despite the fact that the taxpayer is involved with an entity that lodges a BAS that is not required to be lodged for another 30 days. It is difficult to know whether to vary the instalment until the BAS is complete at a later date."