“The Next 5000” ATO Audit Program

We want to make sure you're in the loop about the latest announcement by the ATO. On November 3, 2023, the ATO introduced its new audit and review initiative - the "Next 5,000 Tax Performance Program."

This program is mostly focussing on larger privately owned wealthy groups.

What to Expect:

• The number of ATO audits and reviews will be increasing.

• If you are selected, it does not mean you are doing anything wrong.

• We will help you by sending the ATO the documents they request.

Our Goal: As your expert tax accountants, we're here to ensure the highest level of protection in case of an ATO audit!

ATO Focus:

They have let us know their attention will be on:

• Related party transactions and trust distributions need accurate recording.

• Asset sales, capital gains tax, and GST calculations.

• Mismatches between reported income and expenses between related parties.

• Lack of independent valuations for the sale of properties between related parties.

• Not including related party income - especially rental income.

• Reviewing family trust elections, Division 7A loan documentation and inter-entity loan documentation.

The good news is that our working papers are all ready to go if requested by the ATO to make any review as quick and painless as possible. In addition, our focus for the past 12 months has been on ensuring documentation is in place for all loans – in expectation of the ATO making an announcement such as this one.

Your peace of mind is the most important thing to us. If there is something you would like to run by us, or to check for you in relation to the announcement by the ATO – please let us know. We are always happy to help.