Absolutely furious. Had a term deposit on compound interest for 2 years. When I did my tax, realised they didn't pay me first years interest, which was due a year ago. Rang them...weeks went by...I now get a 'sorry' human error. About the four figure extra tax I will have to pay this financial year because this now pushes me up into another tax bracket getting 2 years interest at once....'sorry'. Unbelievable, but at least I withdrew all my funds today and have opened up a nice Virgin online account at 6.75%.
Hello here in the USA, the banks are all too happy to charge you a fee for everything, seems as you should charge them a fee or do as all of the USA, sue in court. Thanks Norm
Hey Norm - good idea. They said they would write me a note to give to the Taxation Office next year. What do they think this is, pre-school? As if the Taxation Department is going to care that the bank stuffed up...they will tax me on the total income received and love the fact I am over into the next tax bracket. The lack of customer service or understanding about the taxation system is...unbelievable.
ANZ? Been trying to finalise my sister's estate... 2 weeks after I give notice to the bank in person and the staffmember cuts up the credit card I get a letter addressed to me as executor which contains a letter "Dear Miss Dempsey, you account is outstanding... blah, blah, blah do not attempt to use this card until the account is brought into credit." Unbloodybelievable. Also didn't find helpful one of their so-called customer service people referrring to me as the "EX-ecutor"... Can I please borrow PPs "I see dumb people" Tshirt?
So sorry to hear about your sister. Difficult time made worse by the ANZ. No in my case it is the Bendigo Bank. PS: You do have to laugh at the stupidity of banks sometimes. Six months after my husband's death, a letter arrived addressed to the Estate of Paul advising that his signature didn't match the recent account request to change from a joint into a single account and could Paul please visit the branch. Actually kept the letter it was so amusing.
I had 90 bills and the amount of times I had to call the bank and tell them they forgot to make a principle reduction on roller was amazing. Supposedly an automated system.
Maybe at the Bendigo Bank, automated is having posted notes on a calendar and mine fell off...lol. Banks make so much money yet cant get basic fundamentals right.
Get your accountant on to it. I think you can amend the previous years return and resubmit it with the explanation. Could be wrong; but I seem to recall it is possible. The ATO will probably waive the penalty on request if your record is good.
Yes........... and no. Sure the numbers are big; but the % return isn't out of line with other Blue Chips.
Thanks heaps for this. Will follow this up and see what can be done. There isn't any question of penalties - Bendigo Bank paid today the interest for 2008-09 so ATO cant fine me or anything.
This is not advice etc etc etc, and of course is coming from me as an individual only but... Due to automated nature of how MANY amendments are processed, you MAY see a SIC penalty calculated. This is a system calculated penalty in most cases. You may have to write a quick letter requesting remission of this if it occurs. Refer to http://bit.ly/9pKAQv
All I'm saying is that SIC may be calculated when an amendment is done and that a remission request may need to be put in writing. I need to stop staying up so late.
don't you pay tax on when you get the income? isn't the premise of AKA's post that the interest was earned previously and not declared, or are you telling me that you can pay tax on interest just BECAUSE you should have received it?
Yes and no.... Share price to earning ratio is prety much the same as other "Blue Chips" but "Trading profit" when you cut through the economic BS is amazing. Take the ANZ.... A deposit of say $1000.00 will earn lets say 6%. $60pa Borrowing $1000 will cost you say 10%. $100pa a 66% return on investment (ie 100/60 = 1.66 or 66% increase) Fair enough... Through fractional lending they can lend $10,000 on the $1000. http://en.wikipedia.org/wiki/Fractional-reserve_banking Now lets look again A deposit of say $1000.00 will earn lets say 6%. $60pa Borrowing $10,000 will cost you say 10%. $1000pa a 666%pa return on investment (ie 1000/60 = 16.6 or 666%pa) I would not mind an investment like that.... concidering they have security up to the eyeballs and it's all made out of fresh air anyway. Now 666 where have I seen that before??????
That's where we are hitting an interesting point. The interest was technically earned in previous financial years, and it would be beneficial for Janne (based on % that may go to tax, which is again based on Janne stating this may take her into a higher threshold) to amend previous returns. Simple example but better for all of it to be spread over multiple years and therefore get taxed at 30 cents per dollar, than put it in one year and part get taxed at 30 cents per dollar whilst the remainder going over the threshold get taxed at 37 cents per dollar. But the problem is, I don't deal with individual returns. I know that when backpayments of wages are paid there is special calculations made (because I will talk to the employer about it), but I'm not sure how a backpayment of interest is to be reported. PP has a point about reporting income in the year it is paid, that is usually the situation, but I'm just not 100% sure about interest in this situation. My suggestion is that Janne call 13 28 61 and confirm if it would be appropriate to do (or seek professional advice), and my info stays the same, if (huge if) she has to amend, she may see a system calculated penalty. Like I said, I don't deal with personal income tax.
