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  • PAYG withholding - correcting mistakes

    To correct a mistake where you did not withhold pay as you go (PAYG) withholding amounts from a payment, or you withheld the wrong amount, you need to write to us. You should not include any amount that you failed to withhold on either an original or a revised activity statement unless advised to by the ATO. You will need to make a voluntary disclosure.

    If you withheld the correct amount of PAYG withholding, but made a mistake reporting it, or failed to report it when you should have, you need to lodge a revised activity statement.

    To correct a mistake where PAYG withholding amounts were overstated you need to lodge a revised activity statement.

    If you revise an earlier activity statement and the revision increases the tax you owe, or you advise us by letter that you've not withheld an amount from a payment, we generally treat the revised activity statement or letter as a voluntary disclosure. This means you're likely to receive concessional treatment for any penalties and interest charges that apply.

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    What to include in your letter

    When you write to advise us of an amount you didn't withhold from a payment, include the following information:

    • your name or your business's name - that is, the full name of the taxpayer that should have withheld the amount
    • your phone number and address or the name, phone number and address of your authorised contact or tax agent
    • the name of the person or organisation you made the payment to
    • the date you made the payment
    • what the payment amount was
    • what the amount you should have withheld was, or an estimate of what it should have been
    • a signed and dated declaration as follows:

      I declare the information I have given in this letter, including attachments, is true and correct and that I am authorised to disclose this information.

      your signature

      the date

    Keep a copy of the letter for your records.

    Post your letter to us at:

    Australian Taxation Office
    PO Box 1130
    PENRITH  NSW  2740

    Payment summary corrections

    Whatever the mistake, if you've issued any payment summaries to your payees for the period in which the error was made you may need to correct them.

    Changing a payment summary may mean you also need to revise your payment summary statement or payment summary annual report, or both.

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    Last modified: 29 Jun 2018QC 33789