We’re noticing an increased level of audits by the ATO and State regulators. Key audit areas include payroll tax and GST.
With payroll tax, the regulators are looking for those who understate or avoid their payroll tax obligations. A few of the common problem areas are:
If your business has underpaid its payroll tax obligations then you can also expect a call from the workers compensation people.
With GST audits, if you have a refund due, your business is more likely to be audited. The trigger for a GST audit is often large or abnormal refunds but can be as simple as not reconciling the quarterly activity statements.
It’s worth remembering that every business is a potential audit target and even if you pass with flying colours, it will cost your business potentially thousands of dollars (and even more if there is a problem). The best insurance is not to give the regulators any reason to come and visit but failing that, audit insurance is available to protect you against the inevitable cost to your business.
We can do a full compliance risk review for your business to protect you from the ATO and other regulatory bodies. GST and payroll tax are just two of the areas we cover.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Source: Knowledge Shop May 2014