Australian Taxation Office "Hit List"

Every financial year, the Australian Taxation Office (ATO) releases its "hit list" or yearly compliance program. This year is no exception. Some interesting observations can be drawn from the "hit list" in regards to all levels of businesses. One of the big focuses of the program across all levels of taxpayers is the increase in 3rd party data matching for work and business related deductions, omission of income both from Australian sources and foreign sources, Fringe Benefits Tax reporting and GST treatment of property transactions.

The ATO are also increasingly conducting more site visits to Small/Medium Enterprise Operators for the review of:

• GST Transactions
• Superannuation Registration
• Compliance with Taxation Laws
• Taxation Payments

The ATO are also checking:

• Companies with loans to shareholders
• Trustees' compliance with the requirements for written agreements and trust minutes for trustee resolutions made prior to 30 June 2013
• Comparing these minutes with the trust income tax returns lodged, along with the income tax returns of all beneficiaries of the trust

All in all, this updated program seems to be focusing on ensuring people are complying with more areas of the law rather than simply Income Tax and GST, which has been a focus of the ATO for some time.

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