ATO to keep a closer watch on small business
The Australian Taxation Office (ATO) has released a new category of small business benchmarks that will allow it to more accurately select businesses for a review or audit.
ATO second commissioner Bruce Quigley said the new benchmarks were part of a suite of benchmarks used by the ATO to identify and deter activities in the cash economy.
“Using these benchmarks, the ATO can determine the average proportion of cash sales a business should be making and which businesses are not reporting as much cash income as others in the same industry,” Quigley said.
“Businesses whose performance falls significantly outside one or more of these benchmarks are more likely to be selected for a review or audit,” he added.
The new benchmarks would also help businesses compare their performance against others in their industry, Quigley said.
The cash sales benchmarks are based on data matching undertaken with banks to identify credit and debit card sales, as well as information provided by small businesses to the ATO on activity statements.
The benchmarks have initially been developed for 15 industries including: restaurants and takeaways; hairdressing and beauty; and pubs, taverns and bars.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
