TAX AUDIT SUPPORT

Tax Audit Can  Make  Your Life Tough.  So Getting Proper Tax Audit Help Is Critically Important.

ato audit

The Australian Taxation Office (the ATO) has the power to review and audit taxpayers’ tax affairs.

Taxpayers have a number of duties and obligations in relation to their taxation affairs. Under the self-assessment system that has been in place in Australia since 1992, the Tax Office relies on voluntary compliance by taxpayers with these duties and obligations to ensure the efficient operation of the tax system. The Tax Office seeks to ensure compliance with the tax laws by educating taxpayers in terms of tax obligations and auditing the taxpayers with particular areas of tax compliance. Administrative penalties are also designed to encourage taxpayers to fix their tax problems voluntarily.

The ATO implements its audit program with different service lines listed below:

  • aggressive tax planning
  • serious non-compliance of tax law
  • indirect tax (GST, excise, luxury car tax and wine equalization tax)
  • international dealing  (cross border transactions including transfer pricing)
  • cash businesses with lifestyles not meeting the tax returns
  • >superannuation and trustee obligations
  • poor quality tax practitioners

What triggers ATO Audit?

ATO audit

Circumstances that may trigger a review or audit of a taxpayer include:

  • substantial differences between the taxpayer’s financial or tax performance and industry patterns (ATO benchmarks)
  • substantial variation in the amounts or patterns of tax payments compared to previous periods
  • discrepancies between the taxpayer’s economic performance, productivity and tax performance (BAS vs. Tax Return)
  • a history of aggressive tax planning for the taxpayer or for related entities, and
  • information gathered from various sources such as media reports, other government bodies or anonymous tip-offs including the AUSTRAC

Our Tax Audit Help Team supports our clients being audited by the ATO or the Office of State Revenue (the OSR) for various tax matters with well-structured strategies and minimum stress coming from superior negotiation power.

If you are contacted by the ATO for an audit, then a proper action is needed to take.  Also, if you are unhappy with the outcome of the tax audit, you should consider challenging the decision.