Every so often the Australian Taxation Office (ATO) sends a ‘shot across the bow’ warning taxpayers where their gaze is focussed. Last month in a speech to the National Press Club, Tax Commissioner Chris Jordan did exactly that. Part of the reason for this public outing is the gap between the amount of tax the ATO collects and the amount they think should be collected – a gap of well over 6% according to the Commissioner.
Small business – the hit list
- Those deliberately hiding income or avoiding their obligations by failing to register, keep records and/or lodge accurately;
- Businesses that report outside of the small business benchmarks for their industry;
- Employers not deducting and/or not sending PAYG withholding amounts from employee wages;
- Employers not meeting their superannuation guarantee obligations;
- Businesses registered for GST but not actively carrying on a business;
- Failure to lodge activity statements; and
- Incorrect and under reporting of sales.
If your business is outside of the ATO’s benchmarks, it’s important to be prepared to defend why this is the case. This does not mean that your business is doing anything wrong, but it increases the possibility that the ATO will look more closely at your business and seek an explanation.
The SMSF trustees do have the option of deferring the notional capital gain on the …