The Tax Office has revealed it is in the process of contacting businesses to undertake a “GST streamlined assurance review” and outlined what is required of the targeted firms.
The reviews, according to the ATO, are designed to “give you greater certainty about meeting your tax obligations”.
Businesses subject to the reviews will be sent a letter outlining the meeting, and will again be given a written summation of the review’s findings.
It was not revealed how many Australian companies will be subject to the reviews.
According to the ATO website, businesses will be required to produce:
- Information on the organisational structure, business activities and details of any acquisitions, mergers or disposals
- ABN and ACN details for each relevant business entity and details of the relevant GST reporting structure
- Details of any planned or anticipated restructures
- An overview of approaches to risk management and governance
- A copy of any corporate governance frameworks
- Specifics on the business’ approach to tax governance and controls
- An overview of IT systems and infrastructure
- Information on the company’s BAS preparation process
- Tax risks flagged to the market
- Details of any significant and new business transactions
- Information about how tax results and accounting are aligned
“We might ask additional questions about known industry risks or significant issues/risks which may only be relevant to your particular industry or to your business (for example: financial supplies, GST on low value important goods, digital supplies),” the ATO said.
More detailed information about the reviews can be found on the ATO website.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
Ask the Experts: Does automation stack up financially?
By Christopher Overton
Opinion: How bad do things have to get?!
By Adam Zuchetti
Business lessons from the All Blacks
By Steve Stanley