Tax Office penalties

[Nette]

I have come home tonight to find a $1,100 tax fine on my doorstep for apparently failing to lodge my tax returns for 2006 and 2007.

 

I called the tax office to explain that I was not resident in Australia at that time, as I returned to the UK in 2003 after spending 1 year on a working holiday visa. I didn't move back to Australia until August 2007.

 

I was then told that as I had not informed the tax office when leaving Australia in 2003, in addition to the 2006 and 2007 fines, I would also be fined for 2003, 2004, 2005... meaning now looking at a fine of over $2,500! So much for being honest!

 

I have been told that I can get an extension on paying the fine (which is currently due to be paid Christmas week!) whilst I appeal against the penalty.

 

Can anyone advise as to the chances of my appeal being successful?

[HEAPS GOOD !!!]

I reckon some legal advice may well be the way forward.....how can you lodge a tax return if you are not here....bit crazy to me......

 

HG

[coolerking]

YHPM

 

Cooler

 

I have come home tonight to find a $1,100 tax fine on my doorstep for apparently failing to lodge my tax returns for 2006 and 2007.

 

I called the tax office to explain that I was not resident in Australia at that time, as I returned to the UK in 2003 after spending 1 year on a working holiday visa. I didn't move back to Australia until August 2007.

 

I was then told that as I had not informed the tax office when leaving Australia in 2003, in addition to the 2006 and 2007 fines, I would also be fined for 2003, 2004, 2005... meaning now looking at a fine of over $2,500! So much for being honest!

 

I have been told that I can get an extension on paying the fine (which is currently due to be paid Christmas week!) whilst I appeal against the penalty.

 

Can anyone advise as to the chances of my appeal being successful?

[Guest fredhargreaves]

Has the fine actually been levied or are they just warning you what the max fine is? Either way, get yourself a tax agent and appeal it if necessary. Normally they will only slug you for fines on attempts to underpay.

 

Everyone needs to know that htere is a major difference between Oz and UK residency rules re income tax. In the UK, if you are absent for a whole tax year you are not resident for UK income tax. In OZ their attidude is that if you are an Australian resident you are liable for Oz income tax on your worldwide income, subject to allowances for tax paid elsewhere.

 

You cannot shake off Oz residency by just leaving the country. You have to go through the motions of selling up, closing you bank accounts, pulling the kids out of school - various things like that. I say go through the motions because you can do that cynically with the intention of returning later. But if you go away for say 2 years without doing that they will treat you as an Oz resident.

 

There are double taxation agreements between Australia and most (not all) European countries, inclduing the UK, which means that you won't pay twice (it also means that one of them will get you for sure).

 

Best way to choose a tax agent - ask around amongst small business and self-employed people for a good local one - don't follow the TV ads - they are not the best. In Australia nearly everyone uses a tax agent.

[Guest Mark Xpnsit]

I would suggest talking to a good tax accountant and not tax agent - someone experienced in the business. Normally the ATO are reasonable and if you can explain you didnt know and are fully prepared to submit all your returns or notice of non-lodgement ASAP so they can calculate any over/under payments. But your accountant should be the first port of call.

[Nette]

Thanks for all the posts.

 

I have been in contact with the ATO and have an accountant on the case... will let you know how I go.

 

Cheers

[Guest fredhargreaves]

"I would suggest talking to a good tax accountant and not tax agent - someone experienced in the business. "

 

I was using the terms synonymously. The term "agent" crept in because when you have someone handle e.g. your GST the ATO term is agent. You should normally expect a tax accountant to have some sort of qualification e.g. CPA etc and have an office in the same state as you.

[Guest AreWeThereYet?]

I too came home to a nice fat bill for $550 from the ATO for the same period of 2006/07 when I didn't earn a single cent. Was totally unaware that I needed to submit anything. Now I know.

 

Spoke to some woman at the ATO who said I needed a different department, never got through to anyone at all. Was on hold for over an hour then got cut off

 

Rang again and automated message said they were too busy and to call back later. Eventually got another automated message which asked me if I would I like someone to call me back.

Well YES that seems like a good idea. Next available slot was Wednesday 8th December. GREAT!!!

 

I too will be seeking advice from a tax accountant come Monday.

 

This is all too stressful especially when nobody will answer the damn phone at their end.

 

Deb

[sidestep]

Well they gotta cover the cost of pursuing Paul Hogan somehow.

 

13 28 65 is the personal taxation line.

 

So you were on a working holiday visa until 2003, went back to the UK and returned in 2007 as a permanent resident? If so you shouldn't be pursued for 04 - 06 as you were not resident for tax purposes and should query 03 as you would have been liable only for the time spent in Aus as you were not a perm res.

 

Did you pay Income Tax in the UK for 04-06? If so, send certified copies of your UK assessments as proof you paid elsewhere to reinforce your claim to non-residency.

 

The fact that a penalty has been applied does not necessarily mean it will be implemented.

 

Edit: also do you have a perm res visa sticker in your passport? Send a certified copy of that also.

[Guest moonraker1959]

Truly sympathise with you,must be quite stressful.My sister was telling me this week that her son(reently moved to the states from Adelaide)has just got a tax bill for $950.Apparently he had filled in the wrong tax form as at the time he was working part time and also a uni student.When I lived in Australia I always got a tax consultant(independant one)to sort out my tax forms and never once had to pay out,they always owed me!:cute:Anyway to the OP I hope you manage to get things sorted out,and wish you luck with it.xx