Anyone been subject to ATO Tax Audit

Hi there,

Four times in four consecutive years in NZ. Tax audits are bigger timewasters than the kids.

I needed to provide all my tax invoices, depreciation schedules, and cashbooks. They even came out and inspected my vehicle (which of course I use for locating property etc.)

The best part about them was that in the last two audits they discovered they owed me money.

We’re on first name basis now and I haven’t been audited since – if that’s any consolation.

My records were not the best in the beginning but they’re pretty good now.

Make sure you check everything before you give it to the ATO. Try and make their job easy.

All the best
Jeff

hey ya

im poor at keeping stuff
sometimes i know i paid for stuff but i cant find the receipts
eg after one year i try to get receipts for warranty and i find out its NOT there, so boohoo

so wat happens if i lost my stuff and i get audited, shit especially now with all the props and expenses i have

you’ll probably say clean up get organised etc but too busy and my spare time is my alone time not accounting crap time

Ideas?

If your accounting tax deduction don’t add up what happens then? Will I be in deep doodle

It is extremely rare to get audited. I only know a few people that have ever been audited. And one worked for the tax office! The other was partially audited. ie they were asked to substantial certain expenses, but not questioned about others.

But like Jeff above, he was audited a second year in a row. They must think peole let their guard down after one audit, not expecting ever to be hit again.

Terryw
Discover Home Loans
North Sydney
[email protected]

Our accountant was asked to clarify my husbands claim for meal allowances ie: how was it spent, how was it claimed ie: receipts etc. She rang to advise that they had asked the question and advised us of her answer and we hadn’t heard anything again (that was a couple of years ago).

We had a client audited in April – our first one ever. They called in his Tax Depreciation Schedule and asked him a couple of questions. He sent me an e-mail with the ATO questions. The questions concerned those grey areas that we hate (many of which will be cleared up with the changes coming into play on July 1). I wrote a response that included reference to ATO Interpretative Decisions we base our schedules on and the ATO said this week it was fine.

[email protected] 1300 660033

Yes you will need a receipt for any aggregated claims totally over $200. If the aggregated claim is under $200 and the individual item to be claimed is under $10 the requirement to obtain a tax invoice from the supplier does not apply.

You will also need to make sure that the receipt has the words TAX INVOICE otherwise it is considered by the tax office to be an invalid receipt and your claim will be disallowed. Note that all suppliers must provide TAX INVOICES for any amounts over $50.

If you don’t have receipts the claim will be rejected . And this year the tax office DOES have the staff and budget to focus on individual returns. I expect within the next 6 months to see a number of postings regarding audits. Property audits are being targeted and they have the resources and technology to do these audit so don’t be surprised if you get one.

As long as you have kept all your receipts, listened and acted on your accountants advice then there really is nothing to worry about.

Oh people may be interested to know that the ATO now has the software to match transfer of titles to company and individual tax returns. If there has been a transfer of title in your company or individual name and no gain has been included in your tax return then expect a visit. The software matching technology is highly sophisticated and is part of the ATO’s new arsenal. This software also takes into account your PPOR. The wonders of computers.

Hi all
I was audited some years back. I am very much record keeping meticulous…. freaked at the audit… but as it turned out a repair quite A large invoice for an IP property at the time was overlooked. On checking it was the accountants office that failed to include… but me to not notice the initial ommission…(SO DOUBLE CHECK YOUR SUBMISSIONS) so when resubmitted they (ATO) had to pay EVEN MORE [biggrin]………
Havent heard from them since.

My advice is to always substantiate…run it to the border but dont go beyond. Remember the sleep at night factor…[baaa]

Regards

“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson