Every year the Australian Taxation Office makes it nice and easy for entrepreneurs to understand exactly what’s got the tax man hot under the collar by releasing something called its Compliance Guide.
You can check the whole thing out here and I strongly suggest you do.
While the document will help you figure out if any of your activities are going to attract the attention of the ATO this year – usually in the form of letter, a phone call or a request for information, and occasionally in the form of an audit – it will also give you an idea of what is best practise in the world of tax.
And it’s helpfully broken down by business size (there are extensive sections of micro businesses and SMEs) to help you get a feel for the big issues.
But as you flick through this hitlist, there is an important lesson to keep in mind here.
Actively trying to dodge your tax obligations or trying to get under the ATO’s radar is for poor business people.
No-one – not banks, not customers, not suppliers – wants to do business with a tax cheat and the power of the ATO’s data-matching capabilities are such that you will get caught.
Concentrate on running your business, not running away from the ATO.
Get it done – today!