Although we’re heading into the holiday season, where we can all kick-back, let loose and relax. Ensure you don’t loosen your grip on your tax documentation and up-keep over the festive season too much.
While we understand that “tax audit” is generally perceived as a dirty term for both businesses and individuals alike, and we don’t want to add a lump of coal into your festive state of mind… While it’s unlikely, the ATO takes no prisoners when it comes to auditing taxpayers. There are few key things to consider in ensuring your audit preparedness this season, to make sure you feel ‘fairly tree-ted,’ should you be randomly selected for an audit by the ATO.
Here are a few quick tips to keep in mind, that will allow you to head into the new year with clear tax conscience.
Compose yourself and your documentation system
Our first tip is always to remain calm and composed if you do get audited. The ATO does have the authority to enter and search any premises (business or otherwise) if deemed to be a necessary measure. This means they can inspect, examine, or make copies to take extracts from any documentation you may have on site. They also have the power to request other documentation and ask you questions. Now, before you hit the panic button, keep in mind that they will always provide you with written notice of this ahead of time. Plus, if you’ve been submitting your taxes and expenses correctly and have the right back-up measures in place, should something be out of order; as well as industry expert support and advice up your sleeve, you really have nothing to be concerned about.
While we’re on the topic of having the correct back-up measures in place, it’s always a good idea to organise Audit Insurance though your trusted business advisor… like, you guessed it, Nexis! Talk to us about setting up your Audit Insurance now.
“Support yourself with people who support you when it rains”
Following this famous saying, the team at Nexis are always here to support and advise you in times of rain, hail or shine within the tax world. Ensure you notify Nexis as soon as you become aware that you are being audited. We’re always here to help so you can stay AAAA (ATO Audit Aware Always), without feeling AAAA (Always Anxious About Audits).