ATO Audits - Accountancy Insurance claims on the rise
A recent article from audit insurance provider, Accountancy Insurance, highlights significant increases in ATO audits across a broad spectrum of taxpayers in 2014/15.
Record numbers of audit insurance claims have risen in all Australian states across all categories of clients, with particular focus on the $1m - $3m turnover range.
While the majority of audits focus on BAS, GST, FBT, compliance matters and income tax, other claim types that have seen big increases include High Net Wealths, Full or Combined Audits, NSW Payroll Tax, WRE Reviews and SMSFs. Data matching has also been used to tackle taxpayers with foreign assets, cross-border transfers and property.
Each year, the Australian Tax Office publishes its key targets for audits, with its data matching program actively collating information from myriad sources to combat tax evasion, underreporting and mistakes. The ATO typically has 640 million transactions reported to them each year and typically contact more than 450,000 taxpayers annually for data matching concerns.
It's a timely reminder of the protection of audit insurance
can provide if your business or personal tax affairs are targeted for an audit. Having audit insurance in place means that you're able to obtain the professional advice needed when dealing with the Australian tax office to resolve any issues with your tax affairs. The audit process can be expensive and time-consuming so having audit insurance in place can make the audit process far easier to bear.
Bates Cosgrave clients should have received their annual reminders about Audit Shield protection, however if you have not received yours or want more information about audit insurance, please contact us on 02 9957 4033. You can also download a copy of our Audit Insurance Factsheet here
ACT - 44%
NSW - 29.15%
SA - 24.58%
QLD - 17.7%
VIC - 11.5%
WA - 11.5%
Tas - 5.88%
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.