The Australian Taxation Office is using increasingly sophisticated tools to identify incorrect tax claims, making accuracy more important than ever.
The ATO has announced stronger compliance action against businesses that deliberately over-claim deductions and GST credits.
Its data and analytics systems are helping identify businesses whose claims don’t match the rules.
The mistakes being targeted
According to the ATO, common problems include:
- Claiming private expenses as business deductions.
- Over-claiming GST credits.
- Claiming GST credits where GST wasn’t included in the purchase price.
- Lodging BAS or tax returns with incorrect information.
- Poor or missing records.
Businesses that don’t comply may face amended tax liabilities, audits and penalties.
Accurate financial records don’t just support tax compliance.
They can also make it easier to demonstrate financial performance when applying for business finance, because lenders generally rely on complete and reliable financial information during the assessment process.
Reviewing records before lodging can reduce the risk of costly mistakes while helping keep financial information lender-ready.
A broker can explain the information lenders typically request and help prepare for future finance needs.
