17 July 2006
2006 PAYG withholding payment summary annual report – lodgment concession
If you are involved in the preparation of your client’s annual report, and they meet the criteria outlined below, your client may be eligible to lodge their annual report by the due date of their income tax return.
For those eligible clients, that means extra time to lodge.
This concession does not apply to large withholders. Large withholders must still lodge by 14 August 2006.
Criteria for lodgment concession
To be eligible for the concession, your client must have:
§ only closely held payees
§ lodged their 2005 payment summary annual report by 30 June 2006, and
§ lodged their 2005 income tax return by 30 June 2006 and did not receive a failure to lodge on time penalty for that return.
A closely held payee (or employee) is one who is a non-arm’s length payee (or employee). This means they are directly related to the entity from which they receive payments (the payer). An example would be members of a family business, directors of a company, a shareholder or a beneficiary.
We will write to tax agents shortly
This year we have simplified the process for you. Later in July we will send you a letter outlining the lodgment concession process for this year and a list of your clients that are eligible for the lodgment concession. These clients have been granted the concession and will have until the due date of their 2006 income tax return to lodge their 2006 payment summary annual report.
If you receive the letter
If all your eligible clients are on this list, you do not need to do anything.
If you have additional clients that are eligible for the concession and are not on the list, you need to follow the instructions outlined in the letter.
If you do not receive a letter
If you do not receive a letter from us by 1 August 2006, and you have clients that are eligible for the concession, you can still request the concession for your clients by using the messaging facility in the Tax Agent Portal, select Client details – closely held deferral requests.
Alternatively, you can notify us by using the Lodgment concession request form (which is available at www.ato.gov.au, select For Tax Professionals – Tax Professionals home page – What you can do – Forms – Search and then enter 15838 into the NAT number field) and sending it to us by:
§ Fax: 1300 139 030
§ Mail: Australian Taxation Office
Locked Bag 1515
Upper Mt Gravatt QLD 4122
You will need to provide us with your client’s ABN and name in order to process your request.
We will review the eligibility of all the clients in your request and will notify you if we consider any client is not eligible for the concession.
You must notify us by 15 September 2006
All lodgment concession requests must be received in the Tax Office by 15 September 2006 and you have until that date to notify us of any additional clients requiring the lodgment concession. If you do not tell us by then, and your client’s annual report is not lodged by 30 September 2006, the concession will not be recorded and failure to lodge on time penalties may apply.
Those not eligible for the concession must lodge by 30 September 2006.
Penalties applied will only be remitted where there are extenuating circumstances.
Steve Ashley
Assistant Commissioner
Operations Accounting
