Timely lodgment and payment of tax obligations is a core expectation of all taxpayers, including Top 500 privately owned and wealthy groups. Assistant Commissioner Glenn Cooper highlights the consequences of not meeting these basic compliance obligations and how it can be avoided with effective tax governance.
'Lodging or paying late can result in penalties, interest charges, and firmer actions. Repeated delays may also signal weaknesses in a group's tax governance.'
'A practical control for Top 500 groups is a documented lodgment and payment calendar covering all tax obligations across the group, including income tax, BAS and FBT.'
A lodgment and payment calendar can help your group:
- provide clear visibility of all tax deadlines across entities
- trigger internal accountability through documented responsibilities
- support cash-flow planning with advance sight of payment due dates
- demonstrate that your group has robust governance controls.
Glenn adds that 'by embedding a lodgment and payment calendar into your governance procedure, you'll reduce the risk of late lodgment and payment and avoid unnecessary penalties and interest. You'll also meet one of the requirements for effective tax governance that Top 500 groups need to achieve justified trust.'
For an example of a lodgment and payment calendar, refer to our further guidance and examples for effective tax governance. To ensure your lodgment and payment calendar remains current, you should review and update it regularly.
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