Hello Chasers,
The Tax Office has reported that it will be ramping up GST audits, and you could be next.
The ATO is estimated to be missing out on $8 billion in GST revenue each year, and it’s determined to close that gap. That means more audits, especially for businesses with high turnovers, GST liabilities, and notable deviations from previous lodgements.
So, what can you do to protect yourself?Â
Here are our tips:
- Make sure your financial records are up to date and accurate. This is essential for any business, but it’s especially important if you’re facing an audit.
- Be aware of the ATO’s red flags. These include things like late lodgements, extension requests, late payments, and misalignments between income tax and GST records.
- Invest in specialised accounting software and tools tailored to GST compliance. This can help you automate aspects of the bookkeeping process and reduce the risk of errors.
- Identify problems and help rectify the financial matters. This will help you avoid being dragged down by compliance issues.
- Emphasise the importance of data quality and accuracy to your team. Encourage them to get their data in order before we begin lodging your BAS.
- Stress the significance of meticulous record-keeping to your team. Ensure that their record-keeping aligns with industry norms and regulations.
If you do receive an audit, don’t panic. The ATO is generally reasonable and understanding, as long as you’re cooperative and willing to work with them.
But, you should call us first if you have been advised that your business will be subject to an audit.
If you’re concerned about an upcoming GST audit, or if you have any questions about the audit process, please contact our office on 55612643. We can help you prepare for the audit and ensure that your business is following all applicable GST laws and regulations.
Happy Halloween!
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