ARTICLE · 23 FEBRUARY 2009

Are You Ready If The ATO Comes Knocking?

Norton Rose Fulbright Australia

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With tax revenue projected to fall short of previous projections by $115 billion, it is prudent to expect the Australian Taxation Office (ATO) to take a more aggressive stance. Are you prepared should the ATO decide to audit you or your business?

AustraliaTax

David Stavropoulos

Anna Wilson

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With tax revenue projected to fall short of previous projections by $115 billion, it is prudent to expect the Australian Taxation Office (ATO) to take a more aggressive stance. Are you prepared should the ATO decide to audit you or your business?

Prime Minister Kevin Rudd has told reporters:

''The truth is the global recession in general and the collapse in China's growth in particular has produced a $115 billion fall in Australian tax receipts to the Government... That means an impact directly on our budget, that means, therefore, of course, a temporary budget deficit.''

What does this mean for you?

Taxpayers can expect the ATO to act more aggressively to protect its dwindling revenue base. This may mean a larger number of tax audits and a greater willingness to proceed to tax litigation. Taxpayers should review their tax affairs so as to be prepared for an audit, and should voluntarily amend assessments that are found to be understated, so as to avoid or

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