GilPayment Arrangement and Revised Tax Return for 2012
I refer to your letter dated 9/10/12 requesting me to pay a sum of $169,718.31, of which $65,664.40
beingis the tax on my income, and $104,053.91 being PAYG and GST payables. I am not in a position to pay the whole amount immediately but I shall takemake every endeavour to pay the PAYG and GST portion of the debt in 24 monthly instalments if you pleasewould consider waiving offthe interest and penalty amounting to $9,169.91 charged on this debt,which is an additional burden hindering the smooth ongoingoperation of themy business.
I started this catering business, a contract business, in Jan 2011 and entrusted the accounts to an accountant who submitted my tax returns for the financial year 2012 to ATO. My accountant, when he submitted my tax incomes
hasindicated that I had made a profit of $191,473 before taxes. This submission was made by my accountant on line and he had not made me aware of it (Does this mean that he submitted it via the Internet? If so, use "on-line").
I had to prepare
6six meals each for about 80-100 people each day. My purchases of food items accountamounted to about $5,000 per week and this amounts to about $260,000 per year, whereas what is shown in the accounts submitted to you is $192,881. Due to a situation where I had been forbidden to access the work premises by the other party of the catering contract for a few months and the othertime I kept myself busy with the catering business, I have lost or misplaced a large number of receipts offrom supermarkets in respect ofto food items purchased. There was not anya single receipt kept for the months of, to my memory, April or June 2012. Therefore, the theamount of about $68,000 spent on purchases of food items was missed outin the expenses. My taxable income must have beenbe reduced by this amount.
Unfortunately, the electronic backup copy of the accounts for the 2012 financial year is not available in our system. I do not know whether the backups are with the accountant but I understand a copy has been lodged (sent or transmitted?) to ATO. I am a novice when it comes running a business and bookkeeping. All the time I have been busy with numerous things related to this catering business and
couldn'tdidn't pay enough attention onto the bookkeeping side. I have employed a bookkeeper now, and in the future, I am confident that the books arewill be kept up to date to furnish all the accounts statements to ATO inon time.
Hence, this being the first time I have entered into a strenuous business of the type I am doing I shall thank you to consider my revised tax return which I attach herewith. I also request you to give me an instalment payment option, over a period of 24, months for the revised tax amount which I owe to ATO to be paid off.