One of the ATO’s advertised ‘weapons’ against the so called cash economy is its recently published industry benchmarks. These benchmarks allow the Tax Office (ATO) to compare your business’s performance against others in the same industry, thereby easily identifying businesses that are reporting outside the benchmarks and which may therefore be avoiding their tax obligations.
The ATO now has over 100 benchmarks covering numerous business types and this year is ramping up its attack on those businesses reporting outside the ‘average’ by issuing an estimated 100,000 letters. The letters basically question why the figures returned by taxpayers in their income tax returns do not fit the industry average. The ATO expects that after the 100,000 questionnaires are issued, approximately 3,000 to 4,000 audits will be conducted.
At OBT we have researched these benchmarks and have available the benchmark applicable to your business if cited by the ATO. While these are sometimes brief they do give an indication at the type of matters the ATO is concentrating on.
We are on hand to answer any questions you may have about your particular circumstance or any other business queries you may have, so please give us a call on 07 3408 3444.