A tax update from our business and financial partner, HLB Mann Judd.

There are a number of Tax Updates we need to share with you.

Director ID Update

A reminder that the application for a Director Identification Number is now overdue. If you are a director of a company and you have not already applied for a Director ID, then you should attend to this urgently.

Directors who have not applied for a Director ID, may be subject to civil and criminal sanctions including criminal penalties of up to $13,200 and civil penalties of up to $1,100,000.

Please ensure you have provided your HLB adviser of your Director ID number.

Changes to NSW Foreign Surcharges

Revenue NSW announced on 21 February 2023 that effective immediately, citizens of New Zealand, Finland, Germany and South Africa will no longer be required to pay surcharge purchaser duty or surcharge land tax (collectively referred to as “foreign surcharges”) on residential property or land held in their own capacity.

If this affects you, please click here to read more.

Significant Global Entities - take note!

From 1 January 2023, the ATO has increased the failure to lodge penalties starting at $137,500 with a maximum of $687,500 per late lodgement over 5 months late. We have also noticed a change in the way they consider lodgement deferrals with much stricter consideration with many recent applications being denied.

The ATO have also advised our team that they will be imposing SGE failure to lodge (FTL) penalties from January 2023 as they now have a dedicated FTL team actioning these whereas in the past, they may have issued warning letters.

This is a reminder to ensure that your lodgements are on time and managed appropriately, noting that the penalties can apply to tax returns, activity statements, FBT, taxable payments annual reports, CbC reporting and financial statements just to name a few.

March Tax Alert

This Alert addresses:

Download Tax Alert

If you have any questions on any of the above please reach out to your HLB Adviser.