Tax Audit

In the event of a tax audit, we will represent to you and ensure that all your rights are protected.
ATO Tax Audits can be daunting for both clients and advisers. They can have serious implications.
The Commissioner of Taxation
(Commissioner):

• has the general administration of the taxing acts; and

• is required to report to the Commonwealth Treasurer on any breaches or evasions of the taxing acts of which he is aware.

ATO compliance activities include telephone calls, letters to taxpayers as well as audits.
A taxpayer involved in a tax audit faces the following risks.

• the risk of discovery of breaches in tax obligations and the imposition of penalties and interest; and

• the risk of adverse affects on business operations.

Reducing the risks – Audit Strategy
All taxpayers need an appropriate audit strategy to minimise these risks. An audit strategy should cover actions for the taxpayer:

• before an audit

• during an audit

Pre-Audit Strategy
All taxpayers should conduct their affairs in anticipation of an ATO audit.
Accordingly, a taxpayer should:

• take great care in entering transactions with taxation implications; and

• assume that the Commissioner will scrutinise the transaction

You don’t have to “cheat” on your taxes to save money. We can advise you on legitimate tax deductions, business and personal tax structures.