ATO focus on taxpayers who vary their PAYG instalments

The ATO is writing to taxpayers who have varied their PAYG instalments to nil over multiple years, reminding them that the general interest charge (‘GIC’) may apply where their instalments have been significantly understated.

Where varied instalments are less than 85% of the total tax payable, the ATO may impose GIC on the difference and, depending on the circumstances, penalties may also be applied.

Taxpayers are advised to maintain appropriate records to support their variation decisions, and review variations where circumstances change.

Please contact our office if you need any assistance in this regard.