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Your Tax Accountant Sydney Can Help Avoid Penalties

You may want to put your taxes on the back burner in an effort to avoid doing them altogether, however not taking caring of your taxes on time can lead to costly penalties and interest that will be far worse than just owing money on your lodgement.

Interest

If you have not completed your taxes on time and end up owing the government money, interest will be applied not from the date you decide to make your lodgement, but from the date your taxes were due. The longer you put off your lodgement, the more interest you can end up paying. Interest is applied to shortfalls, tax debts and late payments and is compounded daily based on the current rate of interest.

Penalties

Penalties are applied to you if you fail to meet your tax obligations. Penalties in general are charged in the form of interest, but can also be applied as a fine. Penalties can be applied for false or misleading statements and are charged in units based on the severity of the offense. Each unit is $170 if applied now, but any penalty charged prior to December 28, 2012 is only $110.

Avoiding Penalties and Interest

Your best bet for avoiding penalties and interest is to be honest with your lodgement as well as to file your taxes on time. The only way to avoid penalties or interest is demonstrating you made errors or lateness in good faith or due to unavoidable circumstances. But you can also avoid penalties and interest if you can prove you were completely unaware due to using an agent or tax accountant. This means that you had provided information to them and in their capacity as a professional they advised you to make certain claims or held up your claim without your knowledge.

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