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
Two law firms have highlighted licensees’ responsibility to ensure they have sufficient cyber security measures in light of the enforcement action against Fortnum Private Wealth.
A former director has pleaded guilty to providing financial product advice without holding an AFSL which saw almost $2 million transferred to him.
Commonwealth Private Limited, a subsidiary of Commonwealth Bank of Australia, has launched a wholesale offering with the help of JPMAM.
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
