I get it.
Doctors are busy people.
And that can mean taxes get put on the back burner. After all, when you are saving lives dealing with tax returns is a minor nuisance.
Or is it?
Because a WA doctor has been sent to the Gulag for 7 months because they thought that tax returns were a bit of a nuisance.
Admittedly, they were a bit behind, but we accountants see it all the time where taxpayers are a few years behind Schedule.
In our doctor’s case they had not filed returns for 4 years and had just over 1 year’s BAS outstanding. Not exactly what you call exciting or anything most accountants have not seen before.
But the ATO went for the jugular because Dr Russell was convicted at the Perth Magistrates Court and fined $50,000 for failing to provide the Commissioner of Taxation with the outstanding income tax returns and BAS.
Dr Russell’s excuse? Well, according to him, he was a bit busy doctoring.
It was quite interesting that the magistrate stressed that complying with tax obligations was not optional and that failure to do so placed a burden on the rest of the community.
He may be let off early for good behaviour, but only if he lodges all outstanding returns by 30 September 2022.
More worrying was the ATO acting assistant commissioner David Mendoza comments who welcomed the sentence, saying that ‘’those who deliberately try to evade the tax system would be held to account.’’
Crikey. He goes on.
“Our focus is on supporting those who are doing the right thing, and we know this is most people,” Mr Mendoza said. “If you’re falling behind on your obligations or have made an honest mistake, we will work with you to find a solution and get you back on track.
“However, where people continue to do the wrong thing or refuse to engage with us, we will initiate stronger action.
The ATO is quite serious about outstanding returns. They will make multiple attempts to contact taxpayers to provide support to those who are behind with their lodgement obligations. But as the above case shows if you decide to ignore them they will throw you in the Gulag no matter how many lives you have saved.
If you are behind and need a bit of help, let us know. We are here to help
