How To Survive A Tax Audit – The Benefits Of Using Tax Accountants To Sort Out Your Tax Returns Geraldton

When you receive a call from the Australian Taxation Office, you suddenly become anxious. That’s normal. Any taxpayer would get filled with dread, most especially if you are a business owner in Geraldton.

This is because a call from the ATO more likely will result to a tax audit caused by problems with your tax returns Geraldton. And this can be very time consuming and costly for you, as you would have to spend time answering the ATO’s queries instead of making business. Plus, you would need to contact and use the professional assistance of tax accountants to help you get out of trouble.

What Happens When The ATO Makes A Tax Enquiry

It is important for you to know that the ATO makes tax enquiries or audits every day. It is active in reviewing the tax returns and business activity statements that small businesses such as yours provide to them.

When they find some inconsistencies or something missing, they will initially send you a letter to let you know about the problem with your tax returns Geraldton.

If you agree:

If you admit the mistake and agree that the amount should be included in your tax return, you don’t have to do anything. The ATO will have a ‘Notice Of Amended Assessment’ issued to you. This letter will tell you how much you need to pay – which will include penalties and interest.

The good news is that will not penalise you for an honest error. Perhaps, after such experience, you might want to consider the help of tax accountants to sort things out for you next time.

If you disagree:

If you don’t agree, the letter will tell you what to do next. Most likely the ATO will ask you to give their officers the permission to review your books.

During the review, if the officers find an evidence that you did not meet your tax obligations. You need to prepare a much thorough investigation and conduct a tax audit. During a tax audit, you are required to give the ATO offices full and free access to documents, records, premises, and buildings.

What To Do When You Are Audited By The ATO

The wisest decision to make when you are caught up in such trouble is to seek the professional advice of a tax accountant. Registered tax agents or tax accountants can help you be aware of your rights. Also, they can make sure that the tax audit is properly conducted – following the ATO’s administrative practices and in accordance with the relevant tax law.

How To Prevent Being Audited

The best way to avoid being audited is to focus on getting your tax returns Geraldton in good shape. When you make claims, make sure that you have kept all the receipts and records as your proof. Using the professional help of a tax accountant can make a big difference in how you handle your tax returns.

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