26 Oct 2011
accountants news

TAXMAN is getting tough..protect yourself with our Audit Shield Service!

The Australian Tax Office (ATO) continues to announce significant increases in their audit activity.

Now more than ever individuals, businesses and Self Managed Superannuation Funds are at risk of being selected for a random audit. The ATO has introduced a new computer system known as Big Brother (ref AFR 24/7/2011) which gives it unprecedented access to client records from Banks, ASIC & Centrelink. The ATO 2011/12 compliance program states that in the next year they will;

Unfortunately, should you be the subject of a random audit or investigation by the ATO, or indeed any Government Agency (e.g. WorkCover, Payroll Tax), you will incur significant costs. Even if there are no adjustments to the return, there would still be costs associated in the preparation of material for the ATO, or the agency involved, and the managing of the response process.

• Contact 400,000 taxpayers who have apparent discrepancies in the information   they report

• Review over 30,000 Income Tax Return refunds before issue

• Reviewed 24,500 Micro Businesses in regards to PAYG withholding

• Contact 12,500 mainly micro employers regarding unpaid superannuation

• Review 4,000 high risk employers Micro Businesses for non compliance with superannuation guarantee obligations

• Identified 46,000 businesses potentially under-reporting their cash income

• Undertake 580 property related GST audits and reviews

• Verify 47,000 BAS refund claims for Micro Businesses

• Complete 380 risk assessments and reviews and 60 audits of the 2,660 Highly Wealthy Individuals ($30M+)

• Complete 400 risk assessments and reviews and 55 audits of the 82,000 Wealthy Australians ($5M – $30M)

• Review 3,400 Small to Medium Enterprises in regards to PAYG withholding

• ATO will review Contracting Arrangements in Small to Medium Enterprises

• Undertake over 12,000 audits & reviews of BAS refunds in Small to Medium Enterprises

• Conduct around 1,200 audits and reviews relating to property transactions

• Undertake approximately 480 audits and reviews of integrity of business systems in Small to Medium Enterprises

During the month of November you will receive your Audit Shield Renewal Notice if you are an existing client of this service. Otherwise you will receive a quote to take up this service, should you wish to.

Over the past year, we have seen claims for those who have participated of $897 to $14,551 for services covered under the policy.

Should you wish to read more about Audit Shield Services please click