What is a Business Activity Statement?
“In a Business Activity Statement different taxes are coalesced into one statement so that there is absolutely no chance of any payment relating to taxes being overlooked. ”
Every business has to deal with tax matters. In order to report and clear payments regarding GST (Goods and Services Tax), fringe benefit taxes etc. businessmen take the help of Business Activity Statements.In a BAS different taxes are coalesced into one statement so that there is absolutely no chance of any payment relating to taxes being overlooked. Such a statement is issued well in advance before the closing of the reporting period.
Usually, these reports are kept as a record in case your business has to face any audit enquiry. Most businesses keep a record up to five years and then again start safekeeping the statement for the neat 5-year period.
The development of technology has led to a number of ways in which you can file your statements. Online method is preferred these days. Otherwise a BAS can also be filed by your accountant, it can be sent via mail and you can even convey all the details over phone. You also have the option of a monthly, quarterly or annual filing of your BAS.
Even if after the availability of all these options you are not able to file your BAS, be ready to shell out a penalty fee depending on your business. Sometimes it is seen that there are certain mistakes or discrepancies in the BAS and business people shy away from submitting it until the discrepancies are all cleared.
This is an absolutely wrong way to deal with things. Suppose your BAS shows tax that is less that the required one and the closing date is nearing in. You should file it because you will only be charged an amount equivalent to the SI (Simple Interest) on the underpaid amount. This is far better than paying 100+ to 500+ bucks as penalty.
In certain special cases when it seems that you have deliberately tampered with facts and figure, you can be charged a penalty that is fixed at some percentage of the amount that is underpaid.
Some businessmen complain that they never get the refund that is due to them. Such a situation arises when your refund is adjusted for one or more shortcomings on your part. Otherwise, there is absolutely no question that you should not get you refund. Happy Filing!
Author - DeeKay
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