Late submission of your Business Activity Statement (BAS) can trigger penalties known as the failure to lodge on time (FTL) penalty, issued by the Australian Taxation Office (ATO). The severity of these penalties depends on the size of your business, ranging from $222 to $1,110 per late lodgment for most businesses. For “significant global entities,” these penalties can soar to a staggering $111,000. If you fail to lodge four BAS statements on time, you could potentially face penalties totaling up to $4,440.
It’s essential to note that these penalties are not tax-deductible, making timely lodgment crucial for financial prudence.
In the event that meeting the payment deadline for your BAS proves challenging, it is imperative to still submit the statement on time.
This not only prevents the imposition of failure to lodge penalties but also safeguards against potential director penalty notices.
The ATO allows for negotiation of payment plans, particularly through online platforms for debts under $100,000 and businesses with a positive lodgement history. For larger debts or businesses with a track record of payment plans, engaging with the ATO directly becomes necessary.
Keep in mind that the ATO levies interest on overdue debts, adding to the financial implications of delayed payments.
Persistent difficulties in meeting BAS payment obligations may signify underlying cash flow issues that demand urgent attention.
Swiftly addressing these challenges is essential to avoid personal liability for business debts. Beyond the financial considerations, submitting and paying your BAS on time reflects good corporate citizenship and plays a pivotal role in reducing the ATO’s risk assessment of your business.
Remaining vigilant about BAS due dates and taking proactive measures are crucial components of responsible business management. If you find yourself in need of assistance with BAS preparation and lodgment, reaching out to professionals offering tax and accounting services can provide valuable support in navigating these complexities. Ultimately, the commitment to timely compliance not only upholds financial health but also contributes to a positive relationship with regulatory authorities.