The ATO is focusing on the property and construction industry, where it continues to see ongoing issues with paying the correct amount of tax and GST compliance.
The ATO continues to see some small businesses in the property and construction industry:
- Omitting income through not reporting all income, whether received in cash or money deposited into bank accounts
- Incorrectly classifying income from property development
- Contractors omitting income reported to the ATO through the taxable payments reporting system
- Overclaiming expenses and GST credits
- Incorrectly reporting expenses that are private in nature as business expenses, or not apportioning an expense correctly for business and personal use
- Not registering for GST when required
- Using business funds and assets for their personal lifestyle, tax-free.
If the ATO suspects a taxpayer has omitted income or overclaimed expenses in their tax return or BAS, the ATO may contact the taxpayer or their tax agent to fix the mistake or amend the tax return, to understand the circumstances, or conduct a review or audit of the business, where penalties and interest may apply.
