The duration of an Indirect Tax review can vary significantly depending on several factors. These factors include:
Complexity of the Issue: More intricate tax issues or circumstances that involve complex financial transactions might require longer periods of review and investigation.
Volume of Data: If a business has a high volume of transactions or multiple business lines and entities, the review of all the relevant data can take longer.
Cooperation: The level of cooperation from the taxpayer can greatly influence the duration. If there’s clear and prompt communication and quick access to the requested documents, the audit might progress faster. Conversely, if there are delays in providing necessary information, the audit can be extended.
ATO’s Resources: The ATO’s own internal resources, including staff availability and expertise, can impact the duration of the audit.
Discovery of Issues: If the ATO discovers significant non-compliance issues or other discrepancies during the audit, further investigation may be required, thus prolonging the audit.
Negotiations and Disputes: If there are disagreements between the taxpayer and the ATO about the findings or the necessary adjustments, resolution processes can extend the duration of the audit.
As a rough guideline:
- A straightforward and small-scale audit might last a few weeks to a couple of months.
- More complex cases, especially for large businesses with intricate structures and multiple transactions, might extend from several months to over a year or more.
It’s always a good idea to maintain open communication with the ATO throughout the audit process and to seek guidance from tax professionals or advisors familiar with ATO procedures.
BTG can help.
BTG International has helped some of the worlds most respected companies prepare for and/or manage an Indirect Tax review. Call us on 1300 650 258, email contact@btgi.com.au or leave your details and we will be in touch.
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