You’re at the end of the quarter and are going to leave the BAS to later, why is this a bad thing?
The timely lodgements of Business Account Statements’s (“BAS”) is one of the biggest risk for the operators of businesses and can turn a business debt into a personal debt.
For businesses lodging late BAS’s, the Director or owner becomes personally responsible for any debts present. This means that not only are you liable for the PAYG withholding but also the GST liability. This is a significant impost for many businesses.
Many lending facilities also require the on time lodgement of BAS returns and a failure to do can result in loan default.
Equally, if you are attempting a payment arrangement with the ATO they will look at your compliance history. On time BAS is one of the factors that they will look at to determine if you are eligible for an arrangement.
We often see businesses in trouble and see the lodging of the BAS as increasing their problems, the opposite is actually the case and the risk for businesses are substantially greater than not lodging a BAS on time.
If I expect a large liability should I lodge?
A question we always answer the same way: yes, yes and yes.
Regardless of the liability, it is necessary to ensure that the BAS is lodged on time – even if the liability will be significant. Not having the BAS lodged removes all your negotiation ability and puts the Directors or owners into a position where they are personally liable for the debt.
Are you late on a number of BAS and need some guidance? We work closely with specialists in the field if you are struggling with your BAS and can make contact with the ATO to bring your BAS lodgements up to date. Contact us on 1300 023 782.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)
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