The ATO identifies key targets for tax audits in 2011.
Each year the ATO releases a list of risks they have identified under their compliance program.
The list points out what the ATO will focus on in their tax audits and checking in the upcoming year. Take a look below to see if any of the key issues relate to you:
- You are not lodging a tax return,
- You have under-reported income,
- You have over claimed entitlements.
The ATO will also…
- Pay special attention to the non-reporting of capital gains, the property industry and work-related expenses.
- Watch for lodgement of business activity statement (BAS) credits on time.
- Benchmark more than 100 industries to identify under-reported or omitted income.
- Continue to be empathetic to those taxpayers and businesses that are experiencing financial difficulties.
- Focus on high income and wealthy Australians.
- Monitor illegal access to or release of superannuation.
- Work with international revenue authorities to counter the use of tax havens.
The ATO has vast resources devoted to tax audits for both individuals and businesses. If you come under scrutiny from the ATO, you may not even realise it until you receive a letter asking you to explain a difference in your return. If you are unsure or unclear on any of the issues we’ve outlined above, don’t hesitate to email us on [email protected]. The ATO will soon begin the checking and auditing process for 2010/2011. If you need help to ensure you claim the correct expenses, contact us today.