Frequently Asked Questions

Do I Still Need to Lodge Tax Returns While Bankrupt?

Yes, bankruptcy does not remove you from having to lodge your tax returns.

Your tax returns are not required to be lodged up to date before you become bankrupt, but they do need to be lodged.

Most people have no stress with preparing and lodging their outstanding tax returns as they have the comfort of knowing that all pre bankruptcy tax liability will be caught by their bankruptcy.

If your tax return lodgements are not up to date when you become bankrupt, it is important that you get your outstanding tax returns prepared and lodged asap. Should you continue to have outstanding tax returns to lodge, your bankruptcy will not prevent the ATO from prosecuting you for non-lodgement through the court and the court fine you receive will not be caught by your bankruptcy. You will have to pay the court fine.

We are here to help. If you have any questions please give us a call on 1300 764 197 or email hello@understandingbankruptcy.com.au

Further Reading: We recommend our article Wages Super and Spending which can be accessed here.

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