How to overcome the large scale job keeper tax audit initiated by ATO

2020 is a challenging and unforgettable year.

It is the year where one would remember for the rest of their life either with the good or bad memories, the year of COVID19.

During the year, the Australian Taxation Office and the Australian Government had tried their best to keep the small and medium-sized business in Australia afloat.
It is the same year where the ATO helped the Australian Government to launch the job keeper program.

At the time, many businesses applied for the job keeper and got the money.

However, at the moment, the Australian Taxation Office is conducting a tax audit on the job keeper program. The Australian Taxation Office is working over 8000 reviews and tax audits on Jobkeeper program.

Many of these reviews are just data checking and validation. Hence it is essential when you receive a letter from the ATO, do not panic, but work with us to negotiate on a better term and understanding with the ATO.

Most of the times, When ATO is doing the review and audit of the job keeper audit, they are asking for employee details, or bank statements showing the income for that particular period, and the reference period, they want to see whether the sales did decrease by the 30%. They might also be interested in seeing records of payslips going out, whether the employers keep the employment contract, payslips, and the nomination form for the job keepers.
Sometime, the trigger for the Jobkeeper review will be data inconsistency, for example, the data for the employees don’t match previous lodged BAS of previous STP records. Sometimes, the previous lodged BAS does not have wages or sales, but suddenly after job keeper is announced, there is sales and salaries.

Some Accounting Industry Participant anticipates that once the Jobkeeper has ended in March 2021, ATO will focus more on Job Keeper Audit. Hence they are cautioning accountant to be careful when handling applications for the clients.
It is also important to remember that at the moment, the ATO is very data-rich with a lof of employment-related information as a result of the Single Touch Payroll System. The employers need to lodge the report of the employment-related data to the ATO on every pay cycle. Hence it is speculated that there will be more of the employment-related audit into the future. Therefore employers need to be warier of the super payment, PAYG, and salary payment and Fringe Benefits Tax.
As one of the most experienced and professional accountants in Inner West Sydney and Adelaide, we are here to help. If you have encountered JObkeeper Audit, and require some professional assistance to help you to negotiate with the ATO, please come and talk to us, please give John a call on 0410829900.

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