Audits coming your way?

The Federal Government has proposed a 55% increase in audit funding over the next four years with an anticipated target of $3.7 billion in revenue raising as a result. So what does this mean for you? With the ATO not discriminating and targeting individual, businesses and SMSF lodged returns, everyone’s now on the hit list.

What can you do to combat an Audit?

  1. Be in the know
    Gain a better understanding of your financial position and tax situation by reviewing and talking with your PJT accountant. We can conduct a risk assessment, and determine whether there could be a better structure in which to manage your affairs.
  2. Seek expert advice
    In the age of fraudulent emails and phonecalls – if you are contacted by the ATO or other government revenue agencies, the best action for you to take is to advise them that you would firstly like to talk to your accountant. The team at PJT can verify the legitimacy of the contact, and due to our experience in dealing with these matters and will be more likely to reduce the time and cost required to attend to the audit activity in question.
  3. Consider Audit Shield Insurance
    PJT offers Audit Insurance to protect you against unplanned professional fees that can arise as a result of audit activity. Even if no adjustments are required to your lodged returns, significant costs can still be incurred in order to satisfy the requests of the ATO or other government revenue agencies responsible for the investigation.

In the last 12 months we have had four clients experience audits, with an average professional cost of $4,000 to satisfy the ATO’s requests for information. Two of these did not have audit insurance cover. For a small annual fee, you can protect yourself and your business against the cost of an audit.