How is the ATO conducting more audits and reviews?
Data matching becomes more sophisticated each year. Despite compliance, this makes it simpler and far more likely for previously untargeted taxpayers to encounter audit activity.
Single Touch Payroll and Super Stream systems reflect the ATO’s shift to using technology to increase data matching and capture potential compliance issues as and when they occur. Organisations such as banks, private health insurance funds, superannuation funds, Centrelink, and other government bodies are some external sources the ATO uses for data matching. Reporting measures and data sources such as these will mean the ATO obtains more information frequently and throughout the year. With the ATO receiving so much more information and using sophisticated systems to cross-check data, investigating discrepancies will likely increase.
What does this mean for you?
Due to the increased ATO activity, it is now more important than ever that you maintain records of any deductions and payments made for substantiation purposes. Tax records are required to be kept for up to 5 years from the date of lodgement. We recommend clients back up any hard copy records with electronic copies, which can be done in a number of ways, such as using Dext, an electronic shoebox system for receipts.
Maintaining accurate and neat records can significantly reduce the time and costs of responding to the ATO. However, you may still require our assistance in responding to the ATO’s queries in some cases. Professional fees for accounting, legal, and other specific fields can result in massive costs of up to the thousands.
What is the AustAsia Group doing to assist?
For this reason, AustAsia Group has engaged Audit Shield to provide insurance cover for the cost of professional fees, such as ours, in the event the ATO or other revenue-related government body contacts you for a review or audit.
Audit insurance will cover reviews for both current and prior year lodgements, including, but not limited to, income tax returns, activity statement audits, fringe benefits tax, and payroll tax. We will contact you in the near future with offers and additional information, and should you decide to proceed, premiums are tax deductible.
Should you have any questions about your obligations or the Audit Shield offers, please contact us
