How is the ATO conducting more audits and reviews?
Data matching becomes more sophisticated each year. This makes it simpler and far more likely for previously untargeted tax payers to encounter audit activity, despite compliancy.
Single Touch Payroll and Super Stream systems are reflective of 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 just some of the external sources the ATO are using for data-matching. Reporting measures and sources of data 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, it is likely there will be an increase in investigating discrepancies.
What does this mean for you?
Due to the increased ATO activity, it is important now more 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 ReceiptBank, an electronic shoebox system for your receipts.
Maintaining accurate and neat records can go a long way towards reducing time and costs associated with responding to the ATO. However, in some cases you may still require our assistance in responding to the ATO’s queries. Professional fees for accounting, legal and other specific fields can result in massive costs up to the thousands.
What is 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 you are contacted by the ATO or other revenue related government body 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 be contacting 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 on your obligations or the Audit Shield offers, please contact us or email our Consulting Team at consulting@austasiagroup.com.
