• Tax shortfall penalty objections

    We need specific documents and information to process an objection to our decision about a tax shortfall penalty.

    Providing this information up front will reduce delays.

    If you wish to lodge an objection about a tax shortfall penalty, you'll need to:

    • complete and submit the relevant objection form (for taxpayers or tax professionals)
    • provide the supporting information listed below.

    Supporting information required

    If you have previously given us any of the information listed below, you don't need to resend it.

    The information we need includes:

    • how the shortfall occurred and what controls you had in place to prevent it
    • what records you maintained
    • why you think the tax shortfall penalty should not apply or should be reduced
    • whether you checked the correct tax treatment for the transaction (or transactions) that caused the tax shortfall
    • whether you sought advice about the correct tax treatment, and if yes
      • what was the source of the advice?
      • why you think it was reasonable for you to rely on this advice
    • when you first became aware of the error, and if this was only when advised by the ATO, why you did not become aware earlier
    • if the tax shortfall was for goods and services tax (GST)
      • who prepared the business activity statement (BAS) or the information lodged?
      • what was their experience?
    • any additional information to support your claim.

    Next steps:

      Last modified: 20 Feb 2017QC 19021