Tell that Senior Skase (dec), Bond, etc...and to all those now defunct Pty Ltd insulation pink batts gov subsidy businesses.
Peter
That's nothing new. The ATO are constantly battlin tax evasion on all fronts.
Lately they have been given extra funds in an attempt to catch up with phoenix companies. No surprise that the returns on their investment in compliance checking has an extremely good return.
This years focus.
Quote:
The Tax Office has small business square in its sights this year, with PAYG obligations, trusts, profit shifting, eCommerce and the construction and building industries all marked for extra compliance monitoring during the 2013-14 financial year.
The misuse of trusts, profit shifting, complex private structures and dodgy deductions for both small businesses and individuals will be given extra scrutiny this year as well.
And if you’re a sales and marketing manager, then look out – your deductions will be under the microscope.
The ATO has released its compliance monitoring report for the year ahead, the annual document which outlines the areas where the tax man will be spending extra time looking for errors and compliance.
Not only has the ATO been given huge budgets over the past few years to increase certain compliance activity, investment in technology is making these campaigns much more successful – in 2012-13 the ATO raised $2.1 billion in liabilities from SMEs.
New technology, such as data matching, is making the whole process even easier. Over the next year, the ATO expects to make 640 million matches for transactions, especially for those made by wealthy individuals.
But small business will feel the brunt of this technology, too – the ATO will make 17,000 “employer obligation checks” in the year ahead.
It doesn’t stop there. Over the next 12 months, the ATO expects to make 1000 audits of medium-sized enterprises, another 1000 for wealthy individuals and 2047 checks for ensuring compliance with GST laws.
While the ATO will be cracking down on any number of areas this year, these are the key areas you need to know about in 2013-14:..........continues