Are you ready for an ATO risk review & audit?
As technology develops so do the data matching capabilities of the Australian Taxation Office (ATO). It’s a powerful tool and can often lead to compliance risk reviews and ultimately tax audits.
How does it work?
The ATO obtains information from a number of sources including banks, other government departments and industry generally. The information is compared to income and expenditure that your business has reported in income tax returns and activity statements.
If anomalies are detected, or your figures don’t match industry benchmarks for similar businesses, the ATO may conduct a review of your affairs. Subject to their initial findings, a full audit can follow.
The ATO also targets ‘high risk’ businesses for ongoing compliance risk assessments. These generally operate in the ‘cash economy’ and typical businesses include (but are not limited to) those in hospitality, hairdressing and beauty salons. More recently, the building and construction industry has been a focus of the ATO’s attention. Your business may be selected for review simply because you operate in one of these areas.
An ATO review will assess not only your income tax compliance, but GST and employee obligations such as superannuation and Pay As You Go Withholding.
What can you do?
Up to date and accurate record keeping is a must. It will not only help you to demonstrate that you are meeting all your obligations, but will help mitigate the often hefty costs involved in providing all the required information to the ATO in a timely and organised manner.
As your tax professionals, we are always on hand to assist. If you are unsure of what your compliance obligations are, contact your McKinley Plowman advisor who will take the time to go over your affairs, highlight any areas of concern and work with you to implement changes to ensure your compliance risk is limited
In the event of being selected for an ATO review or audit, we suggest you contact us immediately. Our team is very experienced in liaising with the ATO to ensure your rights are protected and the assessment is conducted appropriately, letting you get on with doing what you do best – running your business! Click here to contact us today.
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