Home Forums Money matters Correcting GST on BAS

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    Hey all,

    Hoping someone can help with some guidance here.

    Sole-trader, small business, registered for GST. I do my own qrtly BAS Statements. At end of the year, tax agent does my tax return.

    I was claiming about 70% of my phone calls and internet expenses as work related, so on my qrtly BAS Statements I claimed back the GST component on that work related component/purchase.

    When it came to do doing the yrly tax return, I had a closer look at the call logs, data etc, and told the accountant i think only 50% were work related. (It’s very hard to estimate with the data etc but i try my best to be accurate). So the return was lodged with a calculation on that basis of 50/50 business and personal use.

    So now that means I have overclaimed GST on purchases re the calls/net/data through my BAS statements throughout the yr. The difference is that I probably owe back about $40 to the ATO. Not much i know… But i try to get things as accurate as possible (OCD!)

    Now i don’t know whether i need to amend BAS for Q4 2018-19, and will i be charged penalty interest on the $40? Or can I correct it on the current BAS Statement i.e for Q1 2019-20?

    Tax agent is on holidays, and can’t get an answer any time soon. What’s the correct way of doing this?

    Thanks in advance.

    • Total posts: 712

    I wouldn’t worry about it. The tax office is not going to be interested in making sure you go to jail for $40, lol. Even if you get audited that amount will not get you into trouble, though it may encourage the auditor to take a closer look at your other expenses.
    As long as you fix your mistake from no on you should be just fine.

    • Total posts: 4,485

    When I made an error on a BAS a little while ago I just amended the relevant BAS (3 quarters earlier), there is an option to amend each one. Mine was a much larger error (had 3 zero’s at the end), but as my accountant said the tax office would rather you tell them of errors, and wont punish you if you tell them, rather then them telling you. I received no penalty or interest charges.

    Not sure if I fully agree with [USER=28171]@Rowan@quaotic[/USER] better to be upfront then have them run a fine tooth comb over your books.

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