If you are running a business, you understand the value of your ABN, and once it is canceled, reactivation is always the next step. Australian Business Number can help identify any business that is registered and operating within the jurisdiction. Since this is a compulsory demand from the state, a business operating without an ABN can be punished by law. There are different reasons why you could have your business registration number canceled in Australia, as you will learn below. Once you have your registration number, you should not miss filing your documents on time so that the state can be aware you are still in operation. These here are the circumstances when you should start researching how to cancel ABN successfully.
Not lodging statements when needed to
The one way that the government will suspect your business of inactivity is when no statements are being lodged from your business. This is an agreement you will be made aware of upon getting registered, and if you fail to oversee these obligations, then chances are you could have your ABN canceled. In this case, you should be ready to renew your ABN and submit all your BAS or statements on time as scheduled in your agreement if your license remains valid.
No tax returns from your business
Registering business serves more than just knowing how many businesses are active in Australia. After getting registered, you are supposed to pay tax as per your returns and what your statements reflect. It can, however, get complicated easily, especially if you fail to pay your taxes as expected. This is an offense that gets your ABN canceled, and one could face different penalties for such a blunder. You can get investigated and get deregistered if you falsify your records or just miss making your tax payments.
You get deregistered
Getting deregistered is always a possibility that businesses face especially if they are unable to comply with the legal requirements of the law. Supposing you are found to cook up your records, an investigation can be done, and you can have your number revoked. Deregistration also happens if you are bankrupt or worse, you are still engaged in more activities than he registered for that particular business. Lack of ethics and assaults on customers and the public can also be a dangerous way to tread if you want to keep your ABN.
Other unauthorized activity
Some activities like engaging in fraud and criminal activities can jeopardize the validity of your identification number or business license. There are numerous other reasons businesses get deregistered; however, the main ones are failure to lodge your tax and records on time. Aspects like not disclosing your income truthfully is dangerous because there can be punishments issued to you as a business once found. Supposing your number has been canceled, find out from your ABN whatever the reasons could be and if you are able to correct the situation on time.
Resources: