ATO will not penalise honest tax mistakes

tax/ATO/H&R-Block/finance/

9 September 2016
| By Hope William-Smith |
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The Australian Taxation Office (ATO) are reviewing their approach to penalties and will potentially "let off" first-time inaccurate tax returns from individuals and businesses.

The ATO announced that it would not receive an automatic penalty, meaning inadvertent mistakes are able to be overlooked.

According to H&R Block, under the current regime many businesses and individuals make accidental mistakes.

While the ATO is set to be more lenient on time penalties, there will still be a penalty for dishonesty.

"The ATO will no longer automatically impose a penalty on individuals and small businesses who lodge their income tax return of BAS [business activity statement] late," H&R Block said.

"After a defined period of time — say three or four years — the clock will be reset and taxpayers will get ‘one chance' again."

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