Covid-19 ATO Tax Liabilities Update |
24 March 2020
The ATO has announced a COVID-19 support policy document as to tax liabilities and potential extensions.
Payment Deferrals
If you or your business has been affected by COVID-19, they can work with you to defer some payments and vary instalments that you have due. These include your income tax, activity statement, PAYG instalments and FBT. The period is up to 6 months.
Low Interest Plans
If your business has been affected by COVID-19 and you need help to pay your existing and ongoing tax liabilities, contact us or the ATO to discuss entering into a low interest payment plan.
Remitting Interest and Penalties
If your business is affected by COVID-19, the ATO will consider remitting interest and penalties incurred after 23rd January, 2020.
Varying PAYG Instalments
You have the ability to vary PAYG instalments including those previously remitted in the first 2 quarters and getting this refunded and offset against existing liabilities. We, however, caution you that if there is a greater than 15% variation to actual taxable income for the year, the ATO still has the ability to charge penalties and interest. We don’t know if the remission of interest and penalties above would apply to these circumstances.
Regards
Loewy Consulting Partners
Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not made available to any person without our prior approval.
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CEO Avstev Group, Raymond Weil, Girard-Perregaux, Frederique Constant