Increased penalties for significant global entities – 20 February 2017
Material penalties ahead for failure to lodge and false and misleading statements.
From 1 July 2017, it could cost a significant global entity (SGE) $105,000 if it lodges a tax return just one day late.
The new penalty regime will extend to the failure to lodge any tax document required to be lodged with the Australian Taxation Office (ATO) on time or in an approved form.
The maximum penalty that a SGE could pay where there is a five month delay in lodging just one document late after 1 July 2017 is $525,000.
Lodging numerous tax documents late could therefore result in material, and non-tax deductible, amounts being payable by SGEs, with no certainty of the remission of penalties.