The ATO continues to develop its data matching systems to enhance their analytic and risk profiling.
640 million transactions are now being checked every year – an increase of 40 million from the last Compliance Program.
This comes on the back of a number of laws being passed which make directors personally liable for company tax debts in an increasingly broad range of matters – for example where the tax reporting is more than 3 month’s late.
What can you do?
You can arrange audit insurance, director’s insurance, and follow the ten tips on how to minimize your exposure to liability.
The key areas identified in the ATO’s Compliance in focus 2013-14 are:
Individuals:
- who fail to declare income (or make incorrect claims for deductions)
- who use complex business structures, or participate in tax planning schemes
Employers:
- who fail to report/pay PAYG withholding & the superannuation guarantee
- Who give fringe benefits to employees
- Who treat workers as contractors rather than employees
Business:
- Misuse of trusts
- Shareholder loans
- Using business funds and assets for personal purposes
- Capital gains tax non-disclosure and under-reporting
- The building and construction industry
- GST – refund integrity and real property transactions
Self Managed Superannuation Funds:
- Use of prohibited loans
- Related party transactions
- Funds with a history of non compliance
- Incorrect reporting of exempt pension income, tax losses and non-arms length transactions