Will your business be audited?

The ATO is very upfront when it comes to their compliance activity. Every year they publish small business benchmarks that outline what a typical business ‘looks like’ in different industries. If your business falls outside of those benchmarks, the ATO is likely to take a closer look at why that is.

Falling outside of the benchmarks might not indicate a tax related problem. It might mean that your business has a different business model to the norm or is performing poorly relative to others in the industry. If your business does fall outside of the benchmark however, it is important to ensure that the reasons why can be clearly articulated (preferably documented) and the reason for those differences is not tax evasion.

…The benchmarks are a useful tool for anyone wanting to understand their industry and business, to find out more about the criteria of benchmark that ATO may look at your business… please come and talk to Tax Ideas Accountants & Advisershttps://taxideas.com.au/booking/

Tel: (02) 8318 1545

Posted in News & Events, Tax Updates.