The tax commissioner has warned of an impending crackdown on the tax gaps among SMEs, after the successful multinational corporation loophole crackdown.
The tax commissioner has said that SMEs are now in the sights of the ATO and will not be immune from scrutiny, and has issued a warning to business owners and individuals that disregarding the rules and pressuring accountants to put through illegitimate claims will not be tolerated.
Last week the commissioner told the Institute of Public Accountants that “with the small businesses market, we are seeing … some careless preparation and opportunistic claiming,” and it is this activity that the ATO will focus on, like;
- Private expenses incorrectly claimed
- Unexplained wealth or lifestyle for individuals and small businesses
- Unpaid Superannuation Guarantee
- Concentrations of cash only businesses or those with low usage of merchant banking facilities.
- Undeclared income
Amongst these focus points the ATO’s primary target is on annual deductions for individuals related to work-related expenses.
If you are uncertain of what you can claim, and before purchasing goods you think you can claim, please speak to your trusted adviser at Rubiix to clarify.