The underlying tax, an administrative penalty and an interest charge can each have a different basis, review process and remission question.
We review the notice, calculation, behaviour finding, circumstances and evidence before recommending a pathway.
How we can help
Identify exactly what the ATO imposed
Separate tax, administrative penalties, GIC and SIC.
- Record decision dates.
- Check amounts and periods.
- Identify review rights.
Check the behaviour finding
Test whether the facts support the conduct category and percentage selected.
- Reasonable-care failures are generally 25%.
- Recklessness is generally 50%.
- Intentional disregard is generally 75%.
Review GIC and SIC separately
Check the principal, dates, period and relevant remission considerations.
- GIC commonly applies to unpaid liabilities.
- SIC can follow an amended assessment.
- Assess remission separately.
Build the request from evidence
Explain what happened, what was controlled, action taken and the exact outcome sought.
- Prepare a dated chronology.
- Support assertions with records.
- Distinguish remission from objection.
A clear process from consultation to action
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1
Initial consultation
We discuss the notices, calculations, deadlines and circumstances during the paid consultation.
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2
Test the ATO basis
If further work is engaged, we review the finding, calculation and reasons.
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3
Build the evidence
We organise the chronology and documents supporting the requested outcome.
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4
Make the right request
A remission request, objection or other response is prepared through the correct pathway.
What to have ready
- The assessment and penalty or interest notice.
- Calculation pages and periods.
- Prior returns and amendments.
- Evidence of the circumstances.
- Earlier requests and ATO responses.
- A dated chronology.
ATO Penalties & Interest: What Can Be Challenged or Remitted?
Read how penalties, GIC and SIC differ and why remission and objection need separate analysis.
Read the guideFrequently asked questions
Can the ATO remit a penalty?
The ATO has power to remit penalties in appropriate circumstances. The outcome depends on the decision, evidence and law.
What are common shortfall penalty rates?
Base rates are generally 25% for failure to take reasonable care, 50% for recklessness and 75% for intentional disregard, subject to other rules.
What is general interest charge?
GIC can apply to unpaid tax liabilities and generally accrues while relevant amounts remain unpaid.
What is shortfall interest charge?
SIC can apply when an income tax assessment is amended and a shortfall existed for an earlier period.
Can ATO interest be remitted?
The Commissioner can remit interest in certain circumstances. The cause, control, actions and evidence should be addressed.