If your 28 years old, low income, with ABN and TFN and never put in a tax return, what will happen if you do?
- ShazzbotLv 61 decade agoFavorite Answer
You'll be OK. You just have to lodge tax returns and accept the consequences. We all do. Avoiding it any longer will just create more of a snowballed problem. The ATO never forget. But they do forgive when people make an effort. Do you want to turn 30 being in this situation??!
I deal with a lot of people in this sort of situation. Because I understand and sympathise. But most accountants do not feel the same way... many accountants have a policy of not dealing with with such types. It's usually a high risk type of client that has never dealt with the tax system before... and is inclined to recoil in shock and horror when the accountant tells them that they will in fact owe tax and also have to pay the accountant a rather large fee to sort it out for them. And the accountant has to tell them also that the ATO will charge interest and possibly late penalties (but the ATO rarely charge late penalties when someone is trying to catch up - they're pretty reasonable, actually). So the client goes away to bury their head in sand and they don't pay you for your time. Believe me, I am not asking you to be my client!
Just because you have a low income doesn't mean you won't owe tax. You have to face facts. You probably will owe tax and the accountant's fee will be very worthwhile in the scheme of things. Their role is to reduce your tax, not get you out of paying it altogether. You could do it yourself... but if you don't know what you're doing then it could be a much worse result.
Especially if they ATO call you directly to explain... when you're represented by an accountant (tax agent) the ATO call them, not you.
What you should do now is to make sure you have all your group certificates (now known as PAYG payment summaries, including Centrelink ones) and details of ABN income written down by dates paid and names of payers. And all other records of income. Go to an accountant with that information
to present to them BEFORE even discussing your work related expenses. They need to know your income first. Then they will start asking questions and advise you re expenses.
But make sure you have the money to pay them first. Ask for a quote when you can say that you have all records of your income in order. They cannot chase up those records on your behalf. They can only work with what you give them.
If you can't afford an accountant and have to DIY, the ATO could help you to an extent. But they will always tell you to seek the advice of a tax adviser when you start talking in much detail. That's just how it works.
Good luck :)
Keep in mind that the accountant is your advocate and independent of the ATO.
Note - if you do owe tax as a result of all these late tax returns (and maybe you will in fact be due tax refunds - you don't know), the ATO is very reasonable. Once you lodge your tax returns and get a Notice of Assessment, if you owe tax... all you do is turn the page over, read "do you have difficulty?" and call the number... speak with a voice recognition machine and arrange to pay installments in weekly/fortnightly/monthly amounts. It's dead easy. Just like having a low interest credit card, and they don't bother you unless you default. Everyone's in debt. You can be less scared of the ATO than a bank.
- Anonymous1 decade ago
If you are a low income earner and have been paying tax you will most likely find that you will get tax back when you file your returns.
The ATO are very helpful and will arrange a way for you to pay off a debt if it goes the other way.
Go on! Bite the bullet. You will feel a lot better. Good luck
- 1 decade ago
Well to answer that question would rtequire a lot which would be construed as conversation or other stuff.
Only the ATO could give you an answer. It would depend.