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Re: Are ASIC late fees tax deductible?

Newbie

Views 4071

Replies 4

Are ASIC late fees tax deductible?  Such as late payment penalties for ASIC Industry Funding Levy,  late payment fees for ASIC annual review. 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 3

Hi @ChristinaC 

 

Thank you for your question.

 

Section 26-5 of the ITAA 1997 - penalties or fines imposed by statutory bodies as a result of breaches of an Australian law are not deductible.

 

See the asic.gov.au website for more information: Late payment of ASIC levies.

However, ASIC levies are tax deductible.

 

Hope this helps

 

4 REPLIES 4

Most helpful response

Former Community Support

Replies 3

Hi @ChristinaC 

 

Thank you for your question.

 

Section 26-5 of the ITAA 1997 - penalties or fines imposed by statutory bodies as a result of breaches of an Australian law are not deductible.

 

See the asic.gov.au website for more information: Late payment of ASIC levies.

However, ASIC levies are tax deductible.

 

Hope this helps

 

Newbie

Replies 0

Thank you, Tracey. Smiley Happy

Newbie

Replies 1

Hi could you please confirm if the ASIC late fees (for lodging a document late or don't pay the lodgement fee) are considered as fines for breach of Australian law or simply additional charges. As the late fees looks different to the penalty unit. 

ASIC late fees : https://asic.gov.au/for-business/payments-fees-and-invoices/asic-fees/

ASIC Fines : https://asic.gov.au/about-asic/asic-investigations-and-enforcement/fines-and-penalties/

Thanks.

ATO Community Support

Replies 0

Hi @KDA  

 

ASIC most likely have a right to penalise you under an Australian law when you don't meet your obligations such as lodging a document or paying a fee on time where the due dates would also be legislated.

 

A late fee would be considered a penalty for not complying.

 

To check which laws have been breached though you're best to contact ASIC.