Navigating the complexities of tax obligations can be challenging for taxpayers, especially when it comes to lodging objections against tax assessments. The Australian Taxation Office (ATO) provides clear guidelines on how taxpayers can lodge an objection outside the standard time limit. Here’s what you need to know to ensure your objection is considered, even if you’ve missed the deadline.
Understanding the Standard Time Limits
Typically, the ATO allows objections to be lodged within specific time frames:
- For income tax assessments: The objection must be lodged within two years for individuals and small businesses, and four years for other taxpayers from the date the assessment was issued.
- Amended assessments: 60 days from the date you were given the amended assessment, or within the time limit for the original assessment, whichever is later.
- Decisions to retain refunds: Your objection period starts 90 days after you lodge your tax return, and ends when you receive an amended assessment. If the ATO asks you to provide additional information, your objection period will be extended for the time you take.
- For other tax decisions: The time limit can vary, so it’s crucial to check the specific deadline applicable to your situation.
Can You Lodge an Objection Outside the Time Limit?
If you miss the standard time limit, you can still lodge an objection, but you need to meet certain conditions to be granted an extension. The ATO considers the following factors:
- Reasonable Explanation: You must provide a valid reason for the delay. This could include circumstances beyond your control, such as illness, natural disasters, or other significant disruptions.
- Merits of the Case: The ATO will assess whether your case has sufficient grounds to warrant further consideration.
- Efforts to Comply: Demonstrating that you have taken reasonable steps to comply with your tax obligations can strengthen your case for an extension. This includes showing that you’ve acted promptly once you became aware of the need to lodge an objection.
Lodging an Objection Outside the Time Limit
An objection must be submitted in writing and include the grounds on which the taxpayer objects. According to objection rules, the taxpayer is required to state these grounds “fully and in detail,” along with all supporting evidence, such as bank statements.
A taxation expert, like the team of accountants at The Quinn Group, will ensure the objection is thoroughly prepared, including the grounds and detailed reasons for it. They will also include all relevant supporting documents to strengthen the case.
What Happens Next?
After you lodge your objection, the ATO will review your request for an extension of time. They may contact you for further information or clarification. The decision to grant an extension is at the ATO’s discretion, and they will inform you of their decision in writing.
If your request is approved, the ATO will then consider the merits of your objection. If it’s not approved, you may have the option to seek a review of the decision through the Administrative Appeals Tribunal or the Federal Court of Australia.
Tips for a Successful Objection
- Act Promptly: As soon as you realise you need to lodge an objection, begin preparing your case. The quicker you act, the better your chances of securing an extension.
- Gather Evidence: Collect all relevant documentation to support both your objection and your explanation for the delay. This could include receipts, medical certificates, court orders, correspondence, and records of any disruptions.
- Seek Professional Advice: Consider consulting with a tax professional to ensure your objection is well-prepared and your explanation for the delay is compelling.
Lodging an objection outside the time limit can be a complex process, but with a clear understanding of the ATO’s requirements and thorough preparation, you can enhance your chances of a successful outcome. Stay informed, act quickly, and seek professional guidance to navigate this process effectively.
Seek Expert Advice
If you have any questions regarding this article or need help lodging an objection contact the expert team of taxation accountants at The Quinn Group by calling 1300 QUINNS (1300 784 667) or +61 2 9223 9166, or submit an online enquiry form to arrange an appointment.
