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Tax shortfall penalty – supporting information

Information to provide with your objection about a tax shortfall penalty.

Last updated 23 June 2024

How to lodge

To lodge an objection about a tax shortfall penalty:

Check first if your question is answered in Penalties.

Supporting information

Providing this information up front will reduce delays.

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

The information we need for an objection about a tax shortfall penalty 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

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