“What attracts our attention”, is a new link on the ATO website.
Here below is a summary of what the ATO considers to be highly suspicious and worthy of further investigation.
These broad factors include:
- Tax or economic performance that is not comparable to similar businesses
- Low transparency of your tax affairs
- Large, one-off or unusual transactions, including the transfer of wealth
- Aggressive tax planning
- Tax outcomes that are inconsistent with the intent of the tax law
- Choosing not to comply, or regularly taking controversial interpretations of the law without actually engaging with the ATO
- Your lifestyle is not supported by after-tax income
- Accessing business assets for tax-free private use
- Poor governance and risk-management systems
Note however the ATO breaks these down further to look at suspect behaviours around particular taxes and deductions.
For more information, follow the link: https://www.ato.gov.au/Business/Privately-owned-and-wealthy-groups/What-you-should-know/Transparency/What-attracts-our-attention/
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