The ATO has a responsibility to ensure businesses and individuals adhere to their tax obligations. If you’re a small business owner, the prospect of an audit can be intimidating. Don’t panic, the key to surviving your business audit is to be prepared.
When the ATO performs a Tax Audit, the tax affairs and records of the business are examined to ensure the reported information is accurate and to confirm the tax liability. This includes the cross-check of data against various sources such as banks and suppliers. The audit will also look to see if you are entitled to the deductions your business has claimed in its tax return, and that all assessable income has been declared.
There are certain guidelines you should follow to help you prepare for an audit. To make the process as easy as possible be sure to:
• Provide complete, accurate and timely responses to requests for information.
• Be truthful and honest in your dealings with the ATO.
• Let the ATO know as soon as possible about anything that may delay the audit
• Allow the ATO to make copies of records and documents.
• Organise your records in a logical fashion. Neatness and organised records will build your credibility with the auditor.
Under the law, the ATO can ask a person or business to provide information and ask to produce any books, documents or other papers in their custody or control for inspection. Working co-operatively with the ATO is the best option to ensure the audit is conducted in a fair, reasonable and timely manner.
The Quinn Group can assist you in preparing for your tax audit and help ease the stress that may be associated with your business being audited. Call our experienced tax lawyers and tax accountants today on 1300 QUINNS (784 667) or submit an online enquiry.