Monday 26th August 2013

The ATO Compliance Plan - How will it affect you?

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The Australian Taxation Office has recently released their compliance strategies for the coming year in the Compliance in focus 2013-14 document.

The ATO continues to spend on, and develop, their computer systems to enhance and improve their data analytic and risk profiling capabilities. The number of transactions being checked continues to grow with 640 million transactions now being checked – an increase of 40 million from the last Compliance Program.

The key areas identified in the ATO’s Compliance in Focus 2013-14 are:

Individuals:

  • Individuals who fail to delcare income or make incorrect claims for deductions benefits.
  • The tax risks associated with the use of complex business structures
  • Correct reporting of taxable income by wealthy individuals
  • Participation in tax planning schemes

Employers:

  • Reporting of PAYG Withholding
  • Identifying and correctly reporting fringe benefits provided to employees
  • Workers incorrectly treated as contractors rather than employees
  • Payment of superannuation guarantee

Business:

  • Misuse of trusts and omitted income
  • Shareholder loans
  • Using business funds and assets for personal purposes
  • Capital gains tax non-disclosure and under-reporting
  • Small business cash or hidden economy
  • Small business benchmarks
  • Taxable payment reporting in the building and construction industry
  • GST – refund integrity and real property transactions

 Self Managed Superannuation Funds:

  • Use of prohibited loans
  • Related party transactions
  • Funds with a history of non compliance
  • Incorrect reporting of exempt pension income, tax losses and non-arms length transactions

Have you considered tax audit insurance to reduce your risk - we can assist you with an effective tax audit insurance product. Please contact our office on 9388 2532 or info@tacticapartners.com.au

Source: Accountancy Insurance August 2013 Newsletter

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