We're writing to taxpayers or their tax agent to remind them the general interest charge (GIC) may apply, where PAYG instalments have been significantly understated. The letter reinforces our commitment to the fair and consistent administration of the tax system.
PAYG instalments require taxpayers to make regular payments on their business and investment income during the year, to ensure they meet their expected tax obligations throughout the year. The option to vary PAYG instalments is available if circumstances change.
When varying instalments for your clients, ensure their estimates are based on information that is reasonable, current and can be substantiated. Where circumstances change, they should review and update variations as needed.
How you can support your clients
- Encourage clients to regularly review their PAYG instalment amounts.
- Ensure clients maintain appropriate records to support variation decisions.
- Remind clients to update their PAYG instalment variations if their financial circumstances change.
For more information, see PAYG instalments.