Tax office warns 1200 companies

The tax office is stepping up surveillance on businesses earning between $100 million and $250 million, warning about 1200 businesses and their tax agents of impending tax reviews.

The tax office is stepping up surveillance on businesses earning between $100 million and $250 million, warning about 1200 businesses and their tax agents of impending tax reviews.

The letters urge companies to focus on compliance risks.

“We are also interested in hearing about any compliance issues you or your clients face. We are developing a visit program to learn more about the behavioural and structural drivers of compliance risks among your clients,” the letters say.

A spokesperson for the tax office says any business that receives a letter should immediately start reviewing their tax records.

“We suggest clients and their tax agents review their tax affairs, including checking that the income tax returns and associated schedules for all business entities, including partnerships, trusts and superannuation funds, have been lodged and are accurate.”

Peter Bembrick from HLB Mann Judd recommends businesses review the tax office compliance program to gain an understanding of specific targets.

“It sounds like they’re just getting people thinking and worried about if they’re doing the right thing,” he says.

“My first thought is look at the compliance program and see which parts the ATO is targeting .It’s probably timely to have a look at any areas in their business that they think might be a little bit contentious.”

Frank Brass, H&R Block regional director, says businesses need to make sure everything is in order.

“I would advise the first thing to do is to talk to the tax agent. The tax agent normally has some background on why the letter has been sent. It’s basically one of the steps in [the tax office’s] compliance program that gets people to focus.”

Related stories:

Trending

COMMENTS

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments