SUCCESS STORY
ATO Penalty Remission for Mortgage Broking Firm
Mortgage Broking / Professional Services
about the client
The business was facing a $119,865.64 penalty with no remission submission in place. Following a detailed review and submission to the ATO, $93,571.51 was remitted — reducing the penalty by 78%.
what their challenges were
Years of late and un-lodged Superannuation Guarantee Charge (SGC) statements had caught up with the business, resulting in the ATO applying a Part 7 penalty at the full 200% of the Superannuation Guarantee Charge.
The resulting penalty was $119,865.64 — a liability the business could not realistically service in its existing form.
Despite the scale of the penalty, the client’s previous accountant had not prepared a remission submission or attempted to have the amount reduced. The business needed a thorough review of its position and a clear strategy for addressing the outstanding SGC obligations and penalty.
how actium partners helped
Actium Partners began by reviewing every affected quarter, outstanding lodgement and piece of ATO correspondence to establish a complete picture of the client’s position.
We then brought all outstanding SGC statements up to date and prepared a detailed ATO penalty remission submission. As part of our broader accounting and tax advisory approach, the submission addressed the circumstances behind the superannuation shortfall, the corrective steps taken by the business, its level of engagement and disclosure, and the effect that imposing the full penalty would have on the ongoing viability of the business.
Rather than simply accepting the original penalty as an ongoing financial obligation, our approach focused on presenting the client’s circumstances clearly and comprehensively to the ATO while bringing its outstanding compliance requirements up to date.
So, before Actium Partners became involved, our client had:
- a $119,865.64 Part 7 penalty
- outstanding SGC statements requiring attention
- a penalty imposed at 200% of the Superannuation Guarantee Charge
- no existing remission submission
- a liability the business could not realistically service
After our work, the client had:
- $93,571.51 of the penalty remitted
- the penalty reduced to $26,294.13
- a 78% reduction in the original penalty
- outstanding SGC statements brought up to date
- a more manageable liability and a business remaining compliant and viable
Overall results
ATO penalty reduced by $93,571.51 – a 78% reduction
