The Tax Office says it will be scrutinising every tax return lodged this year as it continues its crackdown on illegitimate claims.
The Tax Office contacts around 2 million taxpayers each year to clarify information on their tax return, but said there was nothing to fear if taxpayers had claimed what they were entitled to.
If the ATO decide to look a little closer through an audit, you can expect that they will contact you or your tax agent to make further enquiries
The sort of information needed will vary depending on the circumstances. Often the ATO is just looking for an explanation and documentation on a deduction.
Other times, they may need to have a more detailed review, usually for more information or evidence to support your claims.
With an estimated tax gap of $8.7 billion, the ATO cannot not afford to turn a blind eye to those who were even overclaiming even by a little.
The ATO’s latest warning comes after taxpayers rushed to lodge early this year to claim the increased low and middle-income tax offset, following suggestions that early lodgers could be susceptible to making errors because of the lack of pre-fill data.
If the ATO has been in contact to review your claims and you know you’ve overclaimed, it is important to be honest and get the matter resolved quickly. Taxpayers are more likely to face penalties if they aren’t honest with us once the ATO comes knocking.
The best way to ensure a smooth audit process is engage with the ATO early and to keep accurate records. Ultimately, do not claim deductions where the money was never spent.
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