CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.

ATO To Waive Penalties On Scrapped Tax Breaks

by Mary Swire,, Hong Kong
Wednesday, September 10, 2014

Small companies affected by the abolition of loss carry-back and asset write-off concessions will not be charged penalties or interest by the Australian Taxation Office (ATO) if they comply with their new obligations satisfactorily.

The two measures were scrapped as part of the mining tax repeal package, which was finally carried by the Senate last week. The tax funded both schemes.

The repeal of the carry-back provisions applies from July 1, 2013 for most taxpayers. The ATO says that it will contact companies who have claimed the offset but are now no longer eligible. It will amend the affected assessments and waive penalties and interest charges if payment is made at a "reasonable" date.

The repeal of small business asset write-off concessions is effective January 1, 2014. The ATO advises that taxpayers who lodged their 2013-14 income year return under the previous law should seek amendments to reduce their depreciation claim. It does not intend to apply penalties or the shortfall interest charge if taxpayers request these amendments within an acceptable period of time.

The loss carry-back rules enabled small firms to "carry-back" up to AUD1m (USD933,680) in losses and offset them against past profits. The asset write-off initiative gave them the opportunity to instantly write off each and every asset costing up to AUD6,500, rather than depreciate them over time.


Country Home Pages