My client paid extra into their activity statement account to cover their income tax debt – why hasn’t the extra payment been offset against the income tax debt?
When a taxpayer makes an additional payment to their activity statement account, the Tax Office treats the surplus amount as a voluntary payment made in anticipation of an upcoming activity statement debt. This is in accordance with our policy outlined in Chapter 75 of the ATO Receivables Policy. If the extra payment was made in error, or if your client intended some of the payment to go towards their income tax debt, you can contact the Tax Office on 13 72 86 Fast Key Code 1 2 5 1 (business clients) or 1 2 5 2 (individual clients) and request that the additional payment be refunded or transferred. Our external collection agencies have instructed their debt collection officers to advise taxpayers to contact the Tax Office in such cases. Any delay in actioning a transfer will not disadvantage your client. The effective date of any payment transferred will be the date it was received, not the date the transfer is actioned. The Tax Office is aware that some of our accounting systems are c
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