Old Tax Return - How Far Back Can They Ask You To Submit?

Discussion in 'Accounting & Tax' started by MangoMadness, 6th Aug, 2020.

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  1. MangoMadness

    MangoMadness Well-Known Member

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    I noted the other day that on the ATO link from My Gov it suggests that I haven't lodged a tax return from many years ago (10+ years)

    I have never been informed that these were missing before, not when I subsequently did my tax return through an agent or when I did them myself.

    Is there a time limit in which they can ask you do submit a return?

    Note - They havent contacted me at all about it, it is just under the Tax Return Summary that states that it hasnt been done.

    Thanks for reading! :)
     
  2. Mike A

    Mike A Well-Known Member

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    if you haven't lodged a return they can go back to that period forever.
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The ATO can initiate things unexpectedly. If they have sufficient data they can provide two sudden options when you receive a unexpected letter

    1. They will issue default assessments after XX days with some nasty consequences (eg no deductions and no ability to amend with a 75% tax loading applied. They are allowed to impose penalties even if its a refund. or
    2. They will issue a notice to lodge. You then have XX days to comply or they will institute criminal charges. Yes. Criminal charges. A failure to comply with a notice is dealt with under the Crimes Act and is a offence easily proven ie you didnt lodge within XX days. You are convicted and fighting it can also be costly (last one the barrister charged $20,000 and a few grand for the solicitor... and she was successful due to a technical defect in the notice . It can render overseas travel to some countries problematic. More so than at present. eg You must apply for a visa to most countries. A tax offence is not to be ignored. The USA Canada NZ and UK for example wont ignore it.

    My best was a client who handed me 28 years of tax returns to lodge.

    Late lodgement can have bizarre outcomes for HELP debts. eg Taxpayer studied in 2017 and help debt and has low income in the years 2018-2020. But since they are lodging 2000-2016 late the HELP debt may be payable based on income from years long before the studies.
     
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  4. datto

    datto Well-Known Member

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    One of the tradies in the Druitt did not lodge a return for 20 years. For one reason or another he had to lodge this years tax return. Anyways he only had to lodge 6 years worth of returns. That's it. And every return was under the tax threshold lol.
     
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Strangely sometimes the ATO will issue a notice specifying some years that are unlodged. This doesnt mean the others dont need to be lodged and skipping years can escalate requests for the gap in a second round.

    I once had someone with a large number to lodge and it had been so long I had to call and request the TFN be reativated. They had killed off the taxpayer. We had to go through a process for the taxpayer to be reidentified as the real person and only then I was given access. Thats a fun experience in beaurocracy. We cant speak to you as you arent link to the taxpayer - That what I want to do but the TFN is inactive. You can lodge a form through your software - No we cant as the TFN is inactive. Can the taxpayer call us. I guess so. Then taxpayer calls and then need to identfy themself using info that is so old they forgot it. Now the ATO wont speak to them either. We also cant tell you what the TFN is. Can you mail it - Yes we have your old details on file as their mailing address so we can mail that to the taxpayer but not to you as agent...whatever !

    Best one was decaesed taxpayer....can they call us. No they are dead. We cant speak to you.....Now they have a process for agents to be reappointed for deceased people. The law had to be changed !!
     
    Last edited: 6th Aug, 2020
  6. MangoMadness

    MangoMadness Well-Known Member

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    Thanks for all of the swift replies.

    Looks like i will have to see if my former employer is still around and see if they have my PAYG summary from nearly 20 years ago just to make sure I have the documents on hand. :)