Tougher approach to small business
The ATO has flagged tougher action against small businesses that wittingly do the wrong thing.
Each quarter, the ATO will highlight its specific risk areas.
This quarter’s focus is on:
Business income is not personal income – using business money and assets for personal use or benefit.
Deductions and concessions – non-commercial business losses, small business CGT concessions.
Operating outside of the system – GST registration and income of taxi, limousine and ride-sourcing services.
Where a small business is deliberately avoiding their obligations, the ATO might take action including reviews or audits, applying penalties and interest, or seeking civil or criminal sanctions in more serious cases.
For the purpose of this guidance small businesses are sole traders, companies, trusts or partnerships that operate a business for all or part of a financial year, and have an aggregated annual turnover of less than $10m.
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