How ATO Notify You of Amendments to Your Tax Return
When ATO make an amendment or adjustment to your tax return through data-matching, ATO will notify you with an amended assessment. This document explains how ATO process these changes and what actions you can take if you disagree with the assessment.
Data-Matching Adjustments or Amendments
If ATO detect an error or omission in your tax return through data-matching with third parties, ATO issue an amended notice of assessment. Before making any amendments, ATO may contact you for additional information. If you do not respond within the specified timeframe, ATO will proceed with issuing the notice.
Your notice of amended assessment will include details of any amounts payable and instructions on how to make payments. You will have 21 days from notification to pay any amounts due.
Your Right to a Written Explanation
You are entitled to request a written explanation for any adverse adjustments made to your tax return. To obtain this information, please contact us directly.
Your Right to Request a Review
If you believe the amended assessment is incorrect, or if you have new information that was not available during the initial review, you can request a review of our decision. Your rights to object will not be affected by this request.
Paying the Debt in Instalments
Should you be unable to pay your tax debt on time, you may qualify for a payment plan. Our payment plan estimator can help you determine a feasible plan based on your circumstances. For debts of $100,000 or less, you may set up a payment plan using online services or our automated self-help phone service.
Penalties and Interest for Errors and Omissions
If your tax return is adjusted, a shortfall interest charge (SIC) may apply to any additional tax owing. The SIC will be indicated on your notice of amended assessment. These interest charges are intended to:
- Encourage timely payment of tax liabilities
- Prevent any advantage over those who pay on time
- Compensate the government for late payments
If you receive a notice of amended assessment with SIC charges, you can request a remission of interest charges. You will need to provide an explanation and evidence supporting your request. Each application is reviewed on a case-by-case basis.
Shortfall Interest Charge Deduction
You are eligible to claim a deduction for the SIC in the income year it is incurred. The amount of SIC paid can be found in the statement of account ATO have sent to you.
