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Businesses lodging tax returns and Business Activity Statements (BAS) via a tax agent will be eligible for lodgment extensions following a decision by the Tax Commissioner yesterday. The lodgment extensions are for low-level income-tax returns and the next two quarterly BASs, on the condition payment is accompanied with lodgment of forms. The final date for lodgment and payment of the next BAS, via an agent, is August 13, and the one after that is due on November 12. "The final date for lodgment of non-taxable income-tax returns has been extended from 1 June 2001 to 14 June 2001," a letter from Tax Commissioner Michael Carmody to tax agents states. "The final date for lodgment of superannuation surcharge member contributions statements for self-assessing superannuation funds has been extended to 14 June 2001. "A further broadcast will issue early this week providing information about transitional arrangements for lodgment and payment of 2001 returns for early-balancing entities." The Taxation Institute of Australia welcomes the decision as a "return of some sanity to the tax system". "Although the Taxation Institute and many tax agents would have hoped for more, this represents an outcome which balances the needs of agents with the monetary needs of the government," Institute tax director Michael Dirkis says. "Unfortunately, the government did not see the value in the Tax Institute's recommendation that an eight-week extension should be granted for all returns after 17 May on the basis that payment would accompany lodgment. "This would have given agents greater peace of mind while giving the government greater revenue sooner." While Dirkis acknowledges the government and Tax Office's recognition of the problems facing tax agents, he remains critical of the time it has taken to make changes. "The steady submissions to Prime Minister John Howard from president of the Tax Institute Alice McCleary to provide an eight-week blanket extension were on the whole ignored for six weeks. "It is unfortunate the government and the Tax Office did not act sooner to end this time wasting and costly exercise of individual agents requesting lodgment for particular clients, each of which required an ATO review, acknowledgement and decision. "Much money and time could have been saved on both sides. An early decision would have allowed the lodgment of returns to be the priority," Dirkis says.