The Australian Taxation Office has announced its targets for 2011/12. This summary relates to the Taxation Office’s indicated targets for individuals, micro-businesses (turnover up to $2M), small/medium enterprises (turnover $2M to $250M). The key areas that the ATO are closely examining are:
- work-related expenses – this includes claims for home office expenses, internet connection, mobile telephone costs
- overseas income – remember the ATO has very sophisticated systems to track money moving overseas
- split loans (business and private loans are attracting greater attention)
- correct PAYG Withholding Tax deducted from wages
- superannuation payments made
- “sham” contracting – i.e. if someone is working for your business fulltime, it’s very difficult to establish that they’re a bona fide contractor
- internet trading
- cash businesses; and
- in all cases, the ATO is comparing micro and SME businesses to the benchmarks that they’ve established for the various industries.
- The ATO is also very concerned about Phoenix Company activities where a company is liquidated and then basically commences business under a new name the next day.
- The ATO is also monitoring shareholders’ loans and small business capital gains tax concessions.
If you have any concerns on any aspects of your taxation affairs, please don’t hesitate to contact us.
