WA Extension for ATO Fine Due to Bankruptcy?

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24 March 2017
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Hi,

I just received from the ATO that I have to lodge my end of financial year 2015/2016. I have paid all the base up to date and went into liquidation on the 30 May 2016. I was official bankrupt on the 8 December 2016.

They told me if I did not lodge this and I have to pay a fine of $5,000 dollars. I asked them for an extension because I am bankrupt and can't afford an accountant what will cost me around $5,000-$6,000 and have to pay upfront.

Thank you
 

VictorZ

Member
5 April 2017
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Hi Silvia,

As I understand, the bankruptcy release you from the tax debt upto your date of bankruptcy. If your date of bankruptcy is on the 30 May 2016, you still need to lodge another tax return covers your income for period from 31/05/16-30/06/16. If the date of bankruptcy is 8 Dec 2016, you should be released from tax debt you owned for 2015/2016. But you still have to bring the return up to date to declare the tax debt.

So it is better to check with your bankruptcy trustee to confirm your date of bankruptcy. Then you can talk to an experienced tax agent to manage the return. And I assume this should not cost you 5K if the return is not overly complicate.