Audit activity on the rise

The ATO’s audit activity is on the rise with key areas including payroll tax and GST.

Payroll tax 

Regulators are looking for those who understate or avoid their payroll tax obligations. A few of the common problem areas are:

-contractors

-grouping provisions

-interstate wages

-miscalculating the payroll tax threshold

GST

A business that has a GST refund due is likely to be audited. The trigger for a GST audit is often large or abnormal  refunds, however, it can also be as simple as not reconciling the quarterly activity statements.