IPA welcomes ATO 'one chance' rule
The Australian Tax Office's (ATO's) move to introduce a 'one chance' rule relieving individuals and small business of first-time tax penalties has contributed to a positive cultural shift, according to the Institute of Public Accountants (IPA).
IPA chief executive officer, Andrew Conway, said that this rule was a good sign in particular for small businesses that were often "time-poor".
Under the new rule, if someone had failed to lodge an activity statement or an income tax return on time, they would be given a first-time offender break.
He also noted that not levying the penalty in the first instance would help reduce the administrative burden facing individuals and small business.
"The 'one chance' rule proposal is a clear sign that the ATO recognises that in the past, it may have been too heavy handed on taxpayers trying to do the right thing, by not taking into account individual circumstances," he said.
"The ATO is to be commended for this approach and it is a positive sign that the working culture of the ATO is improving."
AUTHOR
Oksana Patron
Recommended for you
A Victorian accounting firm – in which Count holds a 40 per cent equity stake – has announced the acquisition of an accounting client book through a $1.4 million transaction.
Australian Ethical has reported its net profit after tax (NPAT) fell 15% to $9.6 million for the year ended 30 June, while its underlying profit after tax (UPAT) declined 7% compared with the year prior, to $10.3 million.
Insignia Financial has announced a 59% increase in its underlying net profit after tax (UNPAT) to $234.5 million in FY22.
Having completed their educational qualifications, those advisers who remain in the industry are reporting being “run off their feet” with new clients.
