Payment 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 being 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 take every endeavour to pay the PAYG and GST portion of the debt in 24 monthly instalments if you please consider waiving off the interest and penalty amounting $ 9,169.91 charged on this debt which is an additional burden hindering the smooth ongoing of the business .
I started this catering, 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 has indicated that I had made a profit of $191,473 before tax. This submission was made by my accountant on line and he had not made me aware of it.
I had to prepare 6 meals for about 80-100 people each day. My purchases of food items account 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 few months and the other time I kept myself busy with the catering, I have lost or misplaced a large number of receipts of supermarkets in respect of food items purchased. There was not any single receipt kept for the month of, to my memory April or June 2012. Therefore the the amount about $68,000 spent on purchases of food items was missed out in the expenses. My Taxable income must have been reduced by this amount.
Unfortunately the electronic backup copy of the accounts for 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 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 and couldn't pay enough attention on the bookkeeping side. I have employed a bookkeeper now and in the future, I am confident that books are kept up to date to furnish all the accounts statements to ATO in 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 an instalment payment option over a period of 24 months for the revised tax amount I owe ATO to be paid off.