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12 Dec 14 Update on "double" penalties

In 2014 TAXVINE No 44 (28 November 2014), Member 194 wrote about receiving a 'Penalty for Failure to Lodge Activity Statement on Time' notice, imposing a penalty of $1,700 for the late lodgment of a client’s activity statement, despite his understanding that the maximum penalty was $850 (maximum 5 penalty units x $170).


Member 194 now provides the following update: 

"To correct Member 194 (humbly, me) about the ‘doubled’ maximum penalty being applied for the late lodgment of an activity statement, we now know that this is correct for a ‘medium’ taxpayer remitting PAYGW.

Thank you to Thilini (Tax Counsel with The Tax Institute) and the ATO for setting us right. It’s just that we either don’t have other medium clients, or they are good and lodge on-time, or the ATO is getting more trigger-happy issuing Late Lodgment Penalties (FLOT) notices. 

So now we just need to deal with another Notice, dated 2 December 2014 and received today, for another taxpayer, threatening audit action (etc) against the taxpayer for outstanding activity statements which, er, were lodged on 17 November 2014."