When the ATO audits or otherwise amends an assessment by increasing the amount that you owe, they will also impose a penalty amount. The base penalty amount is a percentage (25%, 50% or 75%) of the increased amount that you owe the ATO (called the shortfall). There may also be a further 20% uplift penalty imposed in addition to the base penalty amount (meaning a maximum 90% penalty is possible). The ATO will also back date the General Interest Charge for the period of time that has passed since the original assessment was due for payment. This can escalate your tax debt significantly if multiple years are involved. We can successfully negotiate to reduce the penalty amounts as well as the Shortfall Interest Charge and the General Interest Charge.