When the State Revenue Office finds that a tax has been underpaid — land tax, duty, payroll tax, vacant residential land tax — it usually charges penalty tax and interest on top of the shortfall. Those additions can end up larger than the tax itself. They are not fixed: the Commissioner has a discretion to remit them, and how the case is put makes a real difference. Coming forward before the SRO finds the problem generally counts for a great deal.
Part of our tax & State Revenue practice.
We establish what was underpaid, why, and over what period — before anything is said to the SRO.
Where a voluntary disclosure is the right course, we make it in a way that puts your position fairly and completely.
We put the case for reducing penalty tax and interest — the circumstances, the steps you have taken, and why the full amount is not warranted.
Often. The Commissioner can remit penalty tax in whole or in part, and the circumstances of the default matter — whether it was a genuine mistake, whether you came forward yourself, and how quickly you acted once you knew.
Generally, a voluntary disclosure made before an investigation begins is treated much more favourably than one made after. Get advice first, so the disclosure is complete and accurate.
A penalty tax assessment can be objected to, like the tax itself, and the same short time limit applies from the date of the notice.
General information only — for advice about your situation, book a consult or call us.
Speak with a lawyer who acts in State Revenue Office matters across Victoria — book online, or call us.
