21 September 2010
The ATO has announced that in this financial year approximately 110,000 letters will be sent out to taxpayers who may be participating in the cash economy. Most of those letters will be sent to businesses reporting outside the small business benchmarks for their industry.
The ATO will be using the following methods for selecting taxpayers to review:
- Data matching to identify discrepancies in reported income
- Businesses that report net income that appears to be lower than required to support the business operators personal living expenses
- Allegations of tax evasion received from the community, and
- Previously audited taxpayers will be monitored to encourage continued compliance.
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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.