As outlined in our March newsletter, the ATO is still trying to assess backlogged tax returns from their computer changeover. However to further confuse the issue they have sent out assessments without refund cheques attached and sent out letters with wrong information on them. Tax agents have also been locked out of the ATO system by not being able to get their client lists off the ATO. All in all, it’s been one great mess!

 

The professional bodies are now getting involved to help the ATO with this process and have a meeting with the ATO to seek waiver of late lodgement penalties and general interest charge as well as payment of interest on refunds that were processed late by the ATO. The Inspector General of Taxation has now also become involved and will be reviewing the performance of this changeover project by the ATO.

 

We will keep you advised of any further action that can be taken against the ATO.