Let us Help you Fix the Tax Audit

Tax Audit in Sydney can be very stressful at the time when the Australian Taxation Office is alleging you have under-declared income or over-claimed deductions, or areas where the tax laws had applied in mistake.
When faced with a tax audit, It is not only the taxpayers who might feel the stress of the tax audit but also the tax accountant who had prepared the specific tax return/s.

Specialist in tax audit specialist for accountant

There is a safe harbor provision in the tax agent legislation, where if it can proven that the taxpayer provided the tax agent with all the relevant facts, then the specific tax agent might be liable for the potential penalty derived as a result of the tax audit.

EndureGo Tax is considered to be one of the most professional and experienced accounting firms in Sydney and Adelaide, and our specialty is to help other accounting firms in dealing with tax audits with the ATO. We can help accountant, whose clients are facing accountants’ tax audits.

If your client’s tax audit matter can be transferred to an independent third-party tax audit specialist like EndureGo Tax, then it will be helpful to you as an accountant and the client.

You will feel comfortable, as the matter will be handled by an experienced tax audit specialist of EndureGo Tax; this would mean the particular tax client will be removed from your tax agent portal, and we will deal with the all necessary complexities associated with the tax audit.

Our tax audit methodology is based on the keywords of Understand, Communicate, Review, Analyze, and Resolve.

Our objective is to minimize all possible adverse outcomes from the tax audit and ensure the accountant stays safe within the safe harbor provision.
We will review the tax audit letter, identify the specific tax audit issue on hand, communicate with the client and ATO tax auditor, get all of the data, analyze them, and ensure that the accountant stays safe with the specific safe harbor provision.

Our core objective besides ensuring the client stays safe from the tax audit; we also want to ensure that the accountant or adviser stays safe from the tax audit.
Our tax audit approach is to review the whole situation, talk to the client, and get the data, and analyze it from an alternative perspective.

We will then communicate with the auditor from ATO, and formulate a strategy to deal with the tax audit.

Our panel of tax lawyers including most of the top tax lawyers in Sydney and on occasions we will choose a particular tax lawyer with a specific area of expertise to work on the particular tax audit case.

At the moment, we are handling a particular tax audit job, which the client was audited in 2004, and at the moment had been penalized with a penalty of over $700,000.

We examined the whole data and reviewed the original tax audit letter, the audit outcome, and the objection, and we then found some contradictory evidence helpful to the objection.

We formulate a strategy in which we do not need to target the year of audit and look at the other year, and if we are successful, then the client would be able to save a significant amount of money.

Our panel of tax lawyers also includes Mr. Michael Cranston who used to be the Deputy Commission of the Australian Taxation Office, Michael Cranston. Hence if you have clients who have received a tax audit or tax review letter from the Australian Taxation Office, please give us a call at 0410-829-900, or send us an email at jc@endurego.com

The Australian Taxation Office is the government entity to administers the Jobkeeper and Cash Flow Booster payment. The job keeper and cash flow boost are the Australian federal government’s economic stimuli to the needed Australian businesses to help them survive during this global pandemic COVID-19. 

To administer the system effectively, the Australian Taxation Office introduced several measures to ascertain whether the business is eligible to receive the grant. One of this eligibility is that the business is required to have notified the Commissioner of assessable income derived in the 2018–19 year, or a taxable supply made between 1 July 2018 and 12 March 2020. This means that the business must have lodged the FY2018/19 tax return before the due date of 12 March 2020. 

This strict interpretation of the eligibility rule means that new businesses that have made taxable supplies on or after 1 January 2020 would be unable to qualify if they report quarterly but would be eligible if they report monthly. 

Similarly, entities that started their business after 1 July 2019, and report the GST on an annual basis would not meet the requirement, even if they made a supply before 12 March 2020. 

A Seasonal Accountant Export commented “There are many businesses that have been badly affected by the economic impact of COVID-19 who can demonstrate business activity before 12 March 2020, yet do not satisfy the requirements of the law. The ATO lacks the discretion to allow the cash flow boost and JobKeeper in these cases,” 

However, it is essential to note that ATO’s hands are tied and that if ATO makes a decision, then objection and appeal will not be of any assistance. 

It is crucial to understand and review the integrity rule, which is as follows:

An entity is not entitled to a JobKeeper payment for an eligible business participant unless:

  1. the entity had an ABN on 12 March 2020 (or a later time allowed by the Commissioner) — i.e. an entity that is recently created to access the JobKeeper payment will not qualify; and
  2. either: 
  3. an amount was included in the entity’s assessable income for the 2018–19 income year about it carrying on a business, and the Commissioner was notified on or before 12 March 2020 (or a later time allowed by the Commissioner); or
  4. The entity made a taxable supply in a tax period that started on or after 1 July 2018 and ended before 12 March 2020, and the Commissioner was notified on or before 12 March 2020 (or a later time allowed by the Commissioner).

The Inspector-General of Taxation and Taxation Ombudsman (IGTO) has now finalized an investigation into the ATO’s administration of JobKeeper and the cash flow boost for new businesses.

They found that the integrity rule is too restrictive. The IGTO has scrutinized ATO decisions in cases where genuine new businesses were deemed ineligible for the economic support measures because of a restrictive integrity rule, which requires entities to have notified the ATO of taxable supplies made before 12 March.

The IGTO’s findings revealed two key points: the meaning of taxable supplies was broader than the definition accepted by the ATO in its earlier decisions. The business activity statement was not the only way to provide notice to the Tax Commissioner.

Under the IGTO, they mentioned that taxable supplies could include financial supplies, and it does not need to be considered. Activities such as borrowing money, opening an acquisition supplies bank account, etc. could satisfy the definition of providing taxable or financial supplies. Also, IGTO mentioned that BAS lodgement is not the only way to notify the ATO about the taxable supplies; there are other acceptable ways.

According to the news from Accountant Daily as of 11 February 2021, The Tax Office has since confirmed that acquisition-supplies made during the commencement of an enterprise may satisfy the integrity rules but has refused to identify all potentially affected taxpayers it believes it would be infeasible to do so.

Instead, the ATO will only review cases where a business had previously challenged its decision.

If you have been blocked out of receiving the Jobkeeper, or had undergone Jobkeeper audit, and were found not eligible, please come and talk to EndureGo Tax. As a leading accounting firm and one of the most specialized accountants and tax agents in Inner West Sydney, who specialize in job keeper audit, we can help you review your cases and see ways to turn around the tide, please give us a call on 1800 841 312. The