The ATO has released a new publication outlining its compliance approach for SMEs, marking the first time that the ATO has published detailed information on its approach to managing tax compliance risks for the SME sector.
Commissioner of Taxation Michael D'Ascenzo says that the publication, titled Tax Compliance For Small-To-Medium Enterprises And Wealthy Individuals, is the product of ATO consultation with business representatives and is a response to feedback received.
“With more than $74 billion of revenue collected last financial year coming from SMEs and wealthy individuals, over a quarter of all revenue collected by the ATO, it is important that we have a good working relationship with clear expectations of each other,” D’Ascenzo explains.
“Those risks that attract our attention include things like where tax performance varies substantially from business performance, there are inconsistencies in activity statements or spikes in refund claims, or there are large one-off or unusual transactions. By publishing information on how we assess risk and what attracts our attention, we intend to provide more practical certainty for taxpayers.”
As well as outlining mutual expectations and how the ATO approaches compliance risks, the publication also details what SMEs and wealthy individuals can expect as part of an audit and review process, how to avoid or reduce the risk of administrative penalties, and the range of options available in resolving disputes with the ATO.
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