Here are the top 5 mistakes businesses make during an ATO Review.
1. Incomplete Documentation
The most common issue is the simplest: businesses don’t have the supporting documentation ready. Invoices, contracts, and BAS calculations should be easy to produce when requested.
2. Poor GST Reconciliations
Discrepancies between financial systems and BAS lodgements are red flags for the ATO. Regular reconciliations reduce surprises and demonstrate good governance.
3. Ineligible Input Tax Credits
Claiming credits without valid tax invoices, or for non-business expenses, is a fast track to adjustments and penalties.
4. Slow or Disorganised Responses
Delays in providing information can frustrate ATO officers and drag out the review process. A clear internal process avoids this.
5. No Central Point of Contact
When multiple staff respond separately, it creates confusion and inconsistency. Always designate one coordinator (internal or external) for communication with the ATO.
How to Avoid These Mistakes
– Conduct an internal review before the ATO does.
– Ensure clear and consistent communication.
– Engage a tax specialist where needed.
The Payoff
By avoiding these mistakes, businesses save time, reduce stress, and strengthen their compliance profile.
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.
