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 to our decision 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 kept
• 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 resulted in the tax shortfall
• whether you sought advice about the correct tax treatment, and if yes
  • the source of the advice
  • why you think it was reasonable for you to rely on this advice
   
• details of any circumstances beyond your control that resulted in the tax shortfall
• details of the efforts you made to correctly report all the transaction (or transactions)
• any additional information to support your claim.

If the tax shortfall was for goods and services tax (GST) we need to know: 

• who prepared the business activity statement (BAS) or the information lodged
• details of their experience in preparing or lodging the BAS

Next steps:

• Objection form – for taxpayers
• Objection form – for tax professionals

See also:

• Penalties

Lists the documents and information we usually need to process an objection to our decision about a tax shortfall penalty.