17 BUSINESS TIPS Signs that your business is up for an Audit By Troy Marchant, Director, Adviceco Chartered Accountants Its tax time! The Australian Tax Office (ATO) has announced its intention to step up activity in a bid to recover significant amounts of unpaid or underpaid taxes. It’s important to look out for signs that your business is at risk Here are some sectors that could potentially be at risk of receiving an audit, as well as some warning signs that the ATO are looking for. Overseas operation Businesses with overseas operations have been named as an audit target. Specifically, the ATO is looking to ensure that the way in which such business groups are set up are consistent with the legal structures that have been established. They are also scrutinising so-called offshore marketing hubs to make certain that profits are not being manoeuvred out of Australia and are keen to close loopholes in anti-avoidance rules that currently enable some such schemes to escape their clutches. Property investment The ATO has announced its intention to arm itself with more information on property investment, using data matching from banks, share registries and Government departments. Individuals with property portfolios should be aware of this focus and ensure all transactions are recorded and reported accurately. Industry comparison Industry benchmarking continues to be a focus for the ATO, and this year, they have implied that agriculture and farming could fall under their gaze. Tradies Tradies will continue to be under the microscope with a specific focus on high work-related deductions claimed by building and construction labourers. This has been triggered by a significant increase in deductions claimed in recent years and fuelled by the ATO finding a high level of incorrect deductions in the investigations it carried out last year. For example, travel between home and work can rarely be claimed, yet many tradies have been doing so. Wealthy individuals The ATO has also put what it refers to as ‘highly wealthy individuals’ on notice. These are people controlling over $30M net wealth. Given the ATO raised over $1 billion from 291 such reviews last year, it is no surprise that this continues to be a focus. Audit warning signs to look out for: • You are in non-compliance with your reporting requirements. It is important to file your BAS returns by the due date. • You are not completing your BAS returns properly. • The ATO’s ears will often prick up if you are claiming large GST refunds that appear out of the ordinary. • The ATO has published (and regularly adds to) headline benchmarking data on a variety of industries. If you’re outside of the standard range, your chances of receiving an audit are increased. Receiving a tax order probably isn’t atop your Christmas list. Regardless, as long as you have nothing to hide, you are properly recording and reporting all transactions within the required timeframes and you are not trying to reduce your tax liability by engaging in questionable schemes, then there really is nothing to worry about. If you take the attitude that you might be asked to open your books to an ATO inspector at any time, you’ll make the right decisions in respect of your bookkeeping and accounting procedures. In the event that you are selected for an audit, there is no reason that you would find yourself exposed. Of course, if you are like many business owners and accounting is not your forte, you would be well served engaging an accountant to give your accounting records a thorough once-over and have them deal with the ATO on your behalf. That way, you can sleep easier at night in the knowledge that you have an expert helping you keep in compliance. CONTINUED FROM PAGE 14 The car park is over 40 years old and Council says that a comprehensive structural assessment identified numerous areas that require remediation works. Council considered a knock-down and rebuild but it was determined that a $2 million remediation of the facility would be the most costeffective way to ensure parking availability for the next 20 plus years. The car park will remain operational throughout the work period. However, there will be reduced level of casual parking. The works are funded partly by Council’s Gosford Parking Station Special Rate Levy levied on Gosford CBD ratepayers with the remaining balance from General Funds. Work is expected to be completed by early 2025. Major remediation works for Gosford City Car Park HELP GIVE A NEW BEGINNING DONATE TODAY RED SHIELD APPEAL CENTRAL COAST BUSINESS REVIEW JULY 2024
RkJQdWJsaXNoZXIy MTI3ODI1