Money Doesn’t Come Without Guidance ...
If you realise you have made a mistake in the information you have given to ATO in a tax or super return or activity statement, then you should correct any error as quickly as possible. When you tell ATO about these mistakes or omissions in returns or statements you've lodged, ATO generally refers to it as a 'Voluntary Disclosure'. If you do not provide the correct information to ATO in legal time limits the ATO charges you interest and penalties. ATO imposes this so that the taxpayers take reasonable care in complying with their obligations. When you make a voluntary disclosure, you can expect a reduction in the penalties and interest charges that ATO normally applies. Some of these charges and penalties are:
Remission of general interest charges
The Tax Office can remit general interest charges fully or partially in any of the following circumstances:
Remission of penalties
If you're dissatisfied with a penalty imposed on you, you may ask ATO to remit it. You can also object to some penalties through the objection process. For big penalties, or complicated cases, ATO may ask you to put your request in writing. If your compliance history is good then ATO considers all the relevant circumstances, when deciding whether it is fair and reasonable to remit the penalty in full or in part. If a tax debt was paid late rather than permanently avoided, there may be a possibility to remit the penalty in full or in part.
Remission of shortfall interest charges
If your tax return is edited and, thus, your tax liability is increased, there is a tax shortfall. You can ask for a shortfall interest charges amount (and any related general interest charges) to be remitted in full or part if there are justifying circumstances – for example, if the ATO contributed to an error that led to a shortfall, or if the shortfall amount is paid before the notice of amended assessment is issued.