17 August, 2010
Most businesses will be finalising their June BAS at the moment. Extra care needs to be taken with this BAS to ensure that you have everything correctly recorded for the year.
What might trigger an audit?
Increasingly, the ATO are matching data provided in your income tax return with the total of information returned in your business activity statements over the same year.
Where they find material differences in the key numbers these differences can trigger an audit. Final revenue figures and inter-entity charges are key risk areas. Decisions about these charges and reconciled numbers should have been made by June 30. You don't have the luxury to wait until you finalise your tax return for the year.
Reconcile your income and expenses accurately
When you lodge your June BAS you have provided the ATO with a summary of your business income and expenses for the year. Make sure that your combined BAS for the year reconcile to your financial statements.
Download August 2010 Newsletter (PDF, 408 kb)
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.