March 2009
 

Accounting

Reduce the Risk of you business being Audited

Accounting

Do you have an FBT liability this year?

Legal

Hints to get you through tough economic times

Legal

Land Tax and Duties Update

From the Desk

From the Principal, Michael Quinn

Important Dates

The Quinns Christmas Break

At Quinns...

Dates to remember this quarter

Client Spotlight

Appserve Pty Ltd

Reduce the risk of your business being audited

Perhaps on one the most unnerving things for a business owner is to be audited. Audits can be extremely time consuming and expensive, not to mention stressful.

The range of areas that a business could be audited for are varied, ranging from taxes such as GST and Payroll to Workers Compensation Insurance and Occupational Health and Safety. It is also important to understand that different types of audits are controlled by various state and federal regulatory bodies.

There are some simple measures that a business owner can implement to ensure that they are adhering to the tax office and other regulatory body requirements and help to legally reduce their chances of being audited.

• Ensure that your business is registered for the appropriate taxes.

• Advise the relevant organisations of any change of contact details in a timely manner. This will ensure that you don’t miss any important information and are easily contactable should the need arise.

• Keep accurate and adequate records – especially for unusual or infrequent transactions, such as Capital Gains Tax.

• Only claim what you know is a genuine tax deduction.

• Use only legitimate business structures.

• Be diligent and ensure that all required forms and returns are lodged on time.

• You can pay the minimum tax you are legally required to, but be sure to always pay some tax as businesses that continually report losses can often become a target for audits.

• Never “back date” documents.

• Employ the resources of a professional accountant and/or tax advisor. They will be able to provide you with general and ongoing advice specific to your situation and also assist you to:

  • Undertake a risk assessment review to identify areas that could potentially trigger a problem, and a possible audit.

  • Provide reliable taxation advice on any significant tax issue, particularly in relation to transactions that involve a significant amount of money.

• You should also contact a professional if you are having problems meeting your current obligations, they may be able to help you address the situation before it escalates.

Remember, even if you follow the above tips, this does not guarantee that you can completely avoid being audited, although it will definitely help to make the process a lot easier should you find your business in that situation.

If you would like more advice on how to operate your business to avoid unnecessary auditing or if you have been issued with an audit request please contact us on 1300 QUINNS and speak to one of our accredited accountants and auditors.

In this uncertain time by providing advice and guidance on the entire range of services that are required by a business that is trying to get back on its feet. If you would like to discuss getting your business back on track contact us on 1300 QUINNS or click here to submit an online enquiry.

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