The Australian Taxation Office has announced that in the 2010/11 financial year, it will be focusing its attention on taxation compliance issues for SMEs.
This initiative is being undertaken in the hopes of promoting a level playing field for all small and medium enterprises throughout Australia, to continue to help those businesses currently unable to meet their taxation obligations, and to promote awareness of legislation to avoid further problems in the future.
With careful monitoring, the ATO will be identifying businesses that are lodging BASs late, incorrectly or not at all. Through regular, random audits and assessments, they will also pinpoint businesses that have undisclosed income or capital gains tax.
An investigation into Australia’s cash economy will also be undertaken, focusing on individuals whose reported salaries are at odds with their lifestyles, and businesses that are reporting income at a level that is significantly inconsistent with their industry standard.
The government’s small business assistance program will continue to help those SMEs having difficulty meeting their taxation obligations, and estimate 85,000 businesses throughout Australia will benefit from the program this year.