As most of you know, I owned a beauty salon for 14 years, employing staff the entire time.
I sold it last November.
And I have recently de-registered for GST as I know it will be a while before I'm earning $75k and didn't want the hassle of BAS statements.
Anyway... my accountant has been doing my quarterly BAS's as usual... and last quarter I get a refund! Or I was meant to. I even got a letter from the ATO saying they tried to deposit the $230 into my bank account but it rejected (I closed that business bank account and opened another in my new business name).
So I send off a letter with my new bank details.
Then I get a letter from the ATO saying that they found a discrepency in my PAYE figures back in... wait for it.... 2001 !!!!!!!!!!!
There is a difference of $917 - and they were witholding my refund until I advised them.
So I phone, and I ask the lady if I will be charged this money and she says "No... we just need to reconcile it". So that's fine. I go back to my 2001 bookwork and I used to do my wages in Excel - and it appears that my "total" columns were incorrect - and yes, it was out by $917. So I said off the ammended sheet back to the ATO. I wait for my refund. Waiting.... Waiting. I give up waiting and I phone the lady again.
She now says... Oh, you have to pay the $917 plus interest. GET THIS.... the interest is : $985 !!!!!!!!!!!!!!!!!!
She says I can write a letter asking to get off on the interest component. But I still have to pay the $917.
I cracked it and said... "why didn't you discover this discrepency 7 YEARS ago when I was earning money???????? Why are you asking me for this money now - when I'm not earning any money!?!?!?!"
My accountant has never heard of this happening before - and asked some accountant friends who also haven't heard about it. But upon phoning the ATO she discovered that for TAXES there is a 4 year limitation that they can ask for old money back. But with other stuff like PAYE there is no limitation - YET. There is a law coming in soon that there will be a blanket 4 year limitation for any ATO claims. So now they are going back through everything that is older then 4 years to find any money they can.
Anyway... I'm going to write my letter/s to the ATO and 99% chance I get off on the interest charge.... and I will cry poor and say it is unreasonable to charge the $917 from 7 years ago - now that I don't have that business and don't earn that money. And if they still insist upon repayment, they can get $10 a week from my family benefit payment!!
Jodiesuper mum of 2 -
Shaun (05/06) &
Shelli (11/07)
