Hello there, I haven't done a tax return in the past four years, when I was 2 years behind I regrettably gave my group certificates and receipts to a guy I met who was an accounting student and said he would look after it all for me etc, he kept stringing me along and never actually lodged anything then his phone number changed and he disappeared. Since then I have foolishly avoided doing another 2 years due to being uncertain about whether I will get anything back or get fined or get in trouble. I recently managed to track him down and get the majority of my papers back and I really want to get it all sorted. In this time I have worked for wages in a factory and as an apprentice tradesperson and had my tax withheld from my pay, my only other income has been some bank interest which is substantially lower than the amount i've paid in tax. I obviously have to go and see a decent accountant but I am a little hesitant on who to trust after my previous experience and I would like to know what I should expect in regards to punishment for not lodging in so long, the ato website says that if you don't owe them anything and they don't contact you then generally you won't be punished but due to the bank interest i'm not sure if I fit into this category or not. Any advice would be greatly appreciated or recommendations for a good accountant within an hour or so of Melbourne. Thanks for reading.
First tax return in the last 4 financial years
Comments
Largely depends on how much you owe the ATO. If the general interest charge (the amount of the interest charged on your unpaid tax payable) is considerably large they might not be lenient and just get you to pay up. If you didn't owe them much i.e. in a refundable position than you will get away Scott free. Just do it sooner or later so you can actually say that you weren't evading or being reckless with your ITRs.
I can't even remember why now, but when I started working I didn't do my ITR until almost a year after it was due. A few weeks later I got a notice of assessment and a letter from the ATO stating the penalties for late lodgement, but saying because it was my first offence they haven't imposed the penalties this time. Fingers crossed it will be the same for you, I remember being really stressed out at the time too but better to get this sorted sooner rather than later.
Definitely see a proper accountant - if your return isn't complicated they won't charge that much. I am in no way affiliated, but I just go to a CA at the taxsmart booth that sets up shop in my local Westfield at tax time. It's a franchise so YMMV but he claims all the deductions I'd expect and then some. For me costs roughly $80-90 for my simple return and I get to claim it as a deduction in the following year.
I have been putting off doing my tax return for the last 4 years as well. Each year, I would download the etax program but kept on putting off doing my tax return until recently. I didn't get a fine(fortunately), probably because I lodged it before ATO noticed.
If it helps you and you want to save some money, I can send you the etax programs for the last 4 years, they run on Windows, but you will not be able to download your data and prefill. It does make doing your tax return easier, because you go through the whole process by answering a series of questions. You won't be able to lodge your tax return electronically for the past years, but you can still print them out and send it to ATO.
It is likely you are due a refund.
Remember, you need to have a record of any expenses you are claiming as deductions, but that can include receipts, but also credit card statements or even diary entries for lower cost items.
It is routine for people to have multiple years of late returns, and there will almost certainly be no penalty if you are due a refund.
With your very simple tax affairs, even though they are a little late, I would recommend asking your friends parents (assuming you are young) who they recommend for tax returns. If this doesn't work, even the H&R block guys would be fine. They have access to the relevant rules and paperwork for past years.When considering an accountant, I always think it is best to use somebody who is thorough, but not aggressive.
For example, I have a 3g dongle I use to access my work while I travel and commute.
I own it for that purpose, and I have home internet for private use, but I claim it for 90% business use so if I ever get audited I can point to that legitimate expense and be confident I'm not going to get tripped up by the occasional checking OzB when on a trip ;-)
A more aggressive approach would be to claim 100% for business. It is probably supportable, but if I get audited, I want to have a long series of reasonable deductions, not have to battle to establish the legitimacy of each item.thanks a lot for all your replies, the info has offered some reassurance. geek001 i have sent a message to your inbox.
As promised, here is the link to the files I uploaded for you.
https://mega.co.nz/#F!WclRgQLT!G_07gQfihKY-RShBBfZDuw
Please let me know if it is not working for you. :)
You would be fine, worst thing to do is not to get through it. even if you do get a fee, you can always just call them up and ask for leniency and explain the situation.(Done before, even offered without asking one time). I'm sure you can claim some expenses which would remove a little bit of bank interest.