COVID-19 PAYG instalment variations
The ATO is indicating that it will not apply excessive penalties or interest on PAYG variations however businesses should not take it for granted.
The Australian Tax Office has indicated it will not be applying penalties or interest for the 2021 income year for excessive variations of PAYG instalments when tax payers make their 'best attempt' to estimate their end of year tax.
The ATO can normally apply penalties where the value of the varied instalments is less than 85% of the total tax payable, however due to COVID-19, the ATO will not be pursing this in 2021.
However, the guidance from the ATO is worded so that it doesn't guarantee penalties won't be payable in all circumstances.
As the PAYG cash flow support comes to an end, please reach out to your accountant for more information in 02 9957 4033.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.