The ATO is writing to taxpayers who have varied their PAYG instalments to nil over multiple years, reminding them that the general interest charge (‘GIC’) may apply where their instalments have been significantly understated.
Where varied instalments are less than 85% of the total tax payable, the ATO may impose GIC on the difference and, depending on the circumstances, penalties may also be applied.
Taxpayers are advised to maintain appropriate records to support their variation decisions, and review variations where circumstances change.
If you have any questions in relation to the matters discussed in this blog, please get in touch with us.