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Re: Outstanding Activity Statements and Tax Returns

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Taxicorn

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I have a client who obtained an ABN and did freelance work until they left Australia about 10 years ago.

Their intention was to not come back and lived & worked through the US and the UK.

 

Now they have just recently come back and needed a 2019 Tax return for a few months non ABN work whilst back.

 

I noticed outstanding tax returns and activity statements going back to 2001.

When they left they 'thought' a family accountant had taken care of things.

 

Now whilst not an Australian Resident for tax purposes they shouldn't need to lodge tax returns for the 10 years of absence (no Australian income earned - closed down all bank accountants, no ties etc). So possibly non-lodgement?

 

Problem is they have absolutely no records of anything earned prior to leaving Australia and technically they should lodge tax returns and activity statements for all that time. (2001-2010).

 

I believe that the ABN was eventually deactivated sometime in 2011?

 

Not sure of the best/correct way of resolving this situation.

 

Any suggestions would be welcomed.

 

 

 

1 ACCEPTED SOLUTION

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Best answer

Devotee Registered Tax Practitioner

Replies 1

1.  Lodge 2019 as a resident showing date returned to AUS at item A2  +  number of resident months.

 

2.  Enter into a lodgement arrangement with ATO for the other years  -  will give some time for client to find records.

 

3.  Year left AUS  =  same as 2019  -  resident = YES   but not whole year

 

4.  Years in between are non-resident years  =>  return not required, as long as no AUS income

 

5.  Earlier years  =>  client has to do the best he can to reconstruct his income  =  estimates if necessary.

 

2 REPLIES 2

Best answer

Devotee Registered Tax Practitioner

Replies 1

1.  Lodge 2019 as a resident showing date returned to AUS at item A2  +  number of resident months.

 

2.  Enter into a lodgement arrangement with ATO for the other years  -  will give some time for client to find records.

 

3.  Year left AUS  =  same as 2019  -  resident = YES   but not whole year

 

4.  Years in between are non-resident years  =>  return not required, as long as no AUS income

 

5.  Earlier years  =>  client has to do the best he can to reconstruct his income  =  estimates if necessary.

 

Highlighted

Taxicorn

Replies 0

@Bruce4Tax 

 

I was heading that way.

 

The client is extremely vague in previous years income but will have to push.

 

4. ABN looks as if it was deactivated about 2011, but says non-lodgements not possible until 2016....?

 

The Old portal should allow for these to be done.

 

Also looks like there was an outstanding debt, which was 'forgiven' but will be resurrected when 2019 is lodged.

 

Appreciate the insight.

 

Thanks

 

 

 

 

 

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