Latest News

Hot Issues
spacer
ATO hit list 2025 – Key Areas Under Review
spacer
Why Succession Planning Matters for Privately Owned and Wealth Groups in Australia
spacer
Benefits of a business plan
spacer
Roles and Responsibilities in a Business Partnership
spacer
Mixing business and pleasure? Be vigilant this tax season
spacer
30 June 2025 - Tax Checklist - Small (and Micro) Business
spacer
3 more GST fraudsters sentenced under ATO’s Operation Protego
spacer
Evolution of Boeing - 1916 - 2025
spacer
ATO - Targeted Areas of Focus 2024-25
spacer
6 ways to improve your business plan
spacer
Benchmarks for small business
spacer
Beware the early lodgment tax trap, CPA Australia warns
spacer
Tax lawyer flags compliance traps with family trusts
spacer
Superannuation on paid parental leave from 1 July 2025
spacer
Tax Time Checklists Individuals; Company; Trust; Partnership; and Super Funds
spacer
Comparison of various Animal Weights
spacer
2025 Tax Planning Guide Part 2
spacer
From 1 July 2025 ATO Interest is no longer tax deductible
spacer
SME confidence and conditions see uptick over Q1 2025, survey reveals
spacer
Depreciation expert urges property investors to leverage tax depreciation
spacer
Buy a business
spacer
Upskilling and self-education costs
spacer
How secure is your super account?
spacer
Freshwater Resources by Country 2025
spacer
Why Might a Lease Dispute Occur?
spacer
2025 Tax Planning Guide Part 1
spacer
$20,000 instant asset write-off
spacer
New Bunnings scam warning
spacer
The Largest Empires in the World's History
Article archive
spacer
Quarter 1 January - March 2025
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
Audit warning sounded as ATO clamps down on dodgy claims

The Tax Office says it will be scrutinising every tax return lodged this year as it continues its crackdown on illegitimate claims.

       

 

ATO assistant commissioner Karen Foat said the Tax Office contacts around 2 million taxpayers each year to clarify information on their tax return, but said there was nothing to fear if they had claimed what they were entitled to.

“If we do decide to look a little closer through an audit, you can expect that we will contact you or your tax agent to make further inquiries,” Ms Foat said.

“The sort of information we may need from you or your agent will vary depending on the circumstances. Often, we are just looking for an explanation and documentation on a deduction.

“Other times, we may need to have a more detailed review. Though, again, this generally involves us asking you or your agent for more information or evidence to support your claims.”

With an estimated tax gap of $8.7 billion, Ms Foat said the ATO could not afford to turn a blind eye to those who were overclaiming even by a little.

“Our biggest tip is to ensure you work with us from the beginning and provide the information required to help us resolve any concerns and finalise the audit,” Ms Foat said.

“We understand it can be frustrating to dig up old receipts and information, but it is necessary. A small amount of overclaiming by a large number of people adds up to $8.7 billion less each year for essential services; we can’t turn a blind eye to that.

“If you think you’ve made a mistake or an error in your tax return, the best thing you can do is to ‘fess up’ as soon as possible.”

Avoiding penalties

The ATO’s latest warning comes after taxpayers rushed to lodge early this year to claim the increased low and middle-income tax offset, with the agency warning that early lodgers could be susceptible to making errors because of the lack of prefill data.

Ms Foat said the best way to avoid a potential audit and subsequent penalties was to come clean sooner rather than later.

“Whether we apply penalties will depend on your behaviour. We see behaviours ranging from genuine mistakes through to deliberate overclaiming. In the most extreme cases of intentional fraud, we may seek to prosecute through the courts,” Ms Foat said.

 

 

 Jotham Lian 
27 September 2019 
accountantsdaily.com.au

 

“If the ATO has been in contact to review your claims and you know you’ve overclaimed, it is important to be honest and get the matter resolved quickly. Taxpayers are more likely to face penalties if they aren’t honest with us once we come knocking.

“The best way to ensure a smooth audit process is engage with us early and to keep accurate records.”

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb