ATO Audits are conducted when ATO systems detect signs that someone is cheating on their taxes. The Australian Tax Office (ATO) now uses more advanced computers to detect suspicious claims and fraudulent tax returns.
ATO director Ross Barns explains that their auditing system continues to be refined. This is so they can effectively handle the 12 million+ individual tax returns they process each year.
Computer modeling finds tax cheats and triggers ATO audits
A series of 20 computer models are run on every tax return, with flags raised on data that looks suspicious.
Wrong or missing information on your return can lead to delays in receiving your refund. In some cases the ATO can even run an audit on your tax affairs.
ATO systems reviewed more than 11 million tax returns in the past 12 months. Flags were raised on 29,526 tax returns. This prevented $132 million being wrongly paid to taxpayers in erroneous and fraudulent returns.
The ATO acknowledges that some tax return errors are by accident, but they’re watching. Consequently, there is no leniency for those who attempt to file a larger tax return than they are entitled to.
If you are unsure about any aspect of your tax return get in touch with us! Send a message direct to your accountant at Etax.com.au; just click “My Etax messages” in the upper menu.
Highly qualified Etax staff are trained to help. Our goal is to minimise the amount of tax you have to pay and maximise your refund! Plus we’ll help you avoid ATO audits and refund delays.