Navigating ATO Risk Reviews and Audits

Audits by the ATO can occur unexpectedly. With JobKeeper, early super release, and COVID-19 cash flow boosts, the ATO will be checking more businesses than ever before. 

 

When it comes to audits, it is important for you to know the process and feel confident about your tax and super position. Understanding the process can ease concerns and ensure compliance. 

What to Expect: 

- The ATO typically begins with a risk review to identify compliance issues before initiating a full audit. 

- Audits involve stages such as initial meetings, investigations, and discussions with the business owner. 

- Various audit types exist for small to medium enterprises, including record keeping, income tax, and superannuation guarantee audits. 

Key Steps: 

- If your business is linked with a registered tax agent, the ATO will engage with them first. 

- Expect an initial interview where the ATO will outline reasons for the audit, obligations, and voluntary disclosure opportunities. 

- Access to comprehensive business records is crucial for a smooth audit process. 

- Personal records may also be required, particularly for undeclared cash income suspicions. 

Tips for Success: 

- Maintain a cooperative and professional behavior with your ATO case officer. 

- Seek assistance from professionals to navigate the audit process and reduce stress. 

- Proactively manage records and systems to minimize future audit impact on your business. 

Understanding the audit process and staying prepared can save time and resources in the long run. If you have any questions or concerns, don't hesitate to reach out to the Lynden Group. Let's work together to make your audit experience as smooth as possible!  

Whether you’ve already been contacted by the ATO or not, Lynden Group is here to guide you through the audit process, ensuring smooth navigation. Even if you haven’t been flagged for an audit, our proactive approach to managing your records and systems can preemptively minimize any potential impact on your business. Trust in our expertise to save you valuable time and resources while protecting your financial well-being.