Best Way to Handle a Business Tax Audit
This article highlights some information relating to the frequent problems of tax audits, failure to lodge tax returns, and the trouble of paying the tax. Some thoughts and instructions are suggested to help constructively decrease or resolve these problems. Tax Audits: Tax authorities require to review selected individuals for tax audits or questioning. These audits are usually targeted at occupations, industries, and individuals who are considered "high risk". Tax audits can inspect either non-disclosure of income or over-claimed deductions. In Australia, the ATO is accountable for assessing and collecting income taxes. Naturally, they also start tax audit programs and collect taxes. The majority of tax audit activities are commenced by two methods the first is data-matching (comparing data held by the ATO with information obtained from other institutions eg banks, other tax authorities or other government agencies). The second method is by targeting "high risk groups...