Due to a number of enquiries on this important issue, we provide a brief on the ATO’s decision to move on from issuing BAS and IAS by paper via post, to electronic lodgement methods.
INSTALMENT ACTIVITY STATEMENTS (IAS) – Individuals
If you are a sole trader, partner of a partnership, or beneficiary of a trust, and you receive annual net income distributions, the ATO issues you with a paper Instalment Activity Statement (IAS) by post, requesting payment of an income tax instalment. The IAS is then required to be lodged and paid by return post, or electronically, to the ATO.
Instead of issuing paper returns by post, the ATO now directs taxpayers to myGov (www.my.gov.au). This is an online facility which enables you to access all government related services and records in one place. These services include ATO, Medicare, Centrelink, Child Support, and more.
If you have received a payment demand from the ATO requesting payment of an income tax instalment that you have not received an associated IAS statement for, please either contact us promptly, or register with myGov and review your ATO obligations. It could be that your paper statements have been discontinued.
Take extra care in ensuring your tax affairs are up to date if this message applies to you. Fines and penalties surrounding late lodgement of IAS returns are a certainty.
BUSINESS & INSTALMENT ACTIVITY STATEMENTS (BAS & IAS) – Businesses
For business clients attending to their ATO compliance obligations in house, the ATO provides what is known as the Business Portal (bp.ato.gov.au). This is an online facility for businesses to view their ATO records, and transact with the ATO electronically.
In the same way that individuals no longer receive paper statements, the same applies for businesses. If your business has received a payment demand from the ATO requesting lodgement of an outstanding BAS or IAS return, or an overdue payment, please contact us promptly, or review your ATO records via the Business Portal. It could be that your paper statements have been discontinued.
For in house lodgers, be sure to understand and meet all ATO deadlines, to avoid fines and penalties. Where your compliance work is outsourced to our firm, we make every effort to ensure your ATO deadlines are met, dependant on timely provision of data.
OUR RESPONSE TO THE CHANGES
As our clients are aware, our firm does not collect or manage ATO and ASIC post unless specifically requested by the client upon engagement. We offer support in the event that a letter received by the ATO or ASIC is unclear or requires action outside the scope of basic administration.
Since the ATOs transition from paper to electronic, we have received a number requests from clients for us to manage ongoing ATO compliance matters, to avoid fines and penalties on overlooked lodgements. Consequently, in the new year we will be offering a service package to include this service.
Don’t hesitate to contact us to arrange a meeting if you require assistance in any of the areas outlined above, or otherwise.
Minnik Chartered Accountants
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