If your business is selected for an ATO business tax audit, there’s no reason to panic. There are a few processes you can work through to ensure you get a fair and reasonable outcome. It’s important to remember that you’re not alone in this time, and you can turn to a professional for guidance and advice. TaxResolve’s Ashley King is an expert in tax processes and dispute resolution. He has provided premium-quality business tax audit help to companies of all sizes to work toward a fair resolution. If you’re about to undergo a corporate tax audit, reach out to TaxResolve today.
How The ATO Selects Cases For A Business Tax Audit
It can help to understand how the ATO selects businesses for a company tax audit so you can be better prepared for your audit. The most important thing to keep in mind is that the ATO does not conduct random audits. There will always be a reason they select a case for an audit. Usually, an audit is undertaken because your business falls into one of the ATO’s planned compliance programs, which include;
- Large Business Top 100 and Top 1000 Justified Trust Programs (includes Tax Risk Management and Tax Governance Framework)
- Privately Owned and Wealthy Groups Top 500 and Next 5000 Programs (includes Tax Risk Management and Tax Governance Framework)
- Medium and Emerging Private Groups Program
- Lifestyle Assets Data-matching Program
- Share trading and ETF Data Matching Program
- Cashflow Boost and Jobkeeper eligibility review Program
The ATO also likely conducted a risk assessment, either overtly or covertly, and assessed a reasonable level of risk that there are one or more tax issues to review. Alternatively, the ATO may have obtained or received information from a third party indicating the presence of a tax issue that has yet to be addressed appropriately. This information may come from an anonymous tip-off, a counterparty to a transaction, a government or private organisation that holds information about transactions and events, or from the multitude of data sources the ATO receives each year.