How to prepare yourself for the current wave of ATO audits and reviews
We’ve heard from Industry Experts Kelly & Partners on the hot topic of how to prepare yourself for the current wave of ATO audits and reviews…
The ATO definitely plans to be more active in 2021 and increase its audit activity. In October 2020 the ATO commenced its “Next 5,000” streamlined assurance review program, which specifically targets private groups connected to individuals with wealth of more than A$50 million.
Ultimately the ATO uses a variety of strategies to determine who to review, one of those being your approach to tax risk.
What this means for you?
One of the ways you can manage your risk and prepare yourself for an ATO audit or review is through Audit Insurance which is outlined below:
Audit insurance
We all know the saying that taxes and death are certain. If you are a high net worth taxpayer, you can add a tax audit to that list. Addressing ATO reviews and audits takes time and money. Even if the ATO does not find any issues when reviewing your tax affairs, you still need to answer their queries as comprehensively as possible. This takes time and money – expect a bill north of $10,000 to address an ATO review where no issues are found.
Having audit insurance to cover ATO reviews will help cover these costs that you will inevitably incur.
Just remember, the time to act on this is now. You need to have this insurance in place before you get selected to be audited.
Contact us today to find out more on (02) 9587 3500 or theteam@wsib.com.au.
