The Australian Taxation Office (ATO) has warned it is focusing more on taxpayers earning money from the sharing economy this tax time. The ATO has cautioned that it has in excess of 600 million pieces of third party data to track activity and income.
What is the sharing economy?
A sharing economy is one that connects buyers (users) and sellers (providers) through an enabler who usually operates an app or a website. Uber and Airbnb are examples of these popular sharing economy companies, driven by advances in technology. People that provide goods or services through such operators need to consider how GST and income tax apply to their earnings.
What is Tax Audit Insurance and how can it help?
The ATO and other government bodies continue to target individuals and businesses and are scrupulously pursuing taxpayers though their data matching ability.
With this in mind, Quill Group have in place a Tax Audit Insurance arrangement, underwritten by AAI Limited trading as Vero Insurance (a subsidiary of Suncorp Group Limited). This is designed to cover the professional fees incurred with the preparation of material and management of the response process. Despite honest and thorough declarations, taxpayers can still be targeted for an audit, enquiry, investigation or review by the ATO.
This is designed to cover the professional fees incurred with the preparation of material and management of the response process. Despite honest and thorough declarations, taxpayers can still be targeted for an audit, enquiry, investigation or review by the ATO.
The costs incurred with audits and such investigations can be significant even if lodgements are correct and no further adjustments are made. It is a common misconception that you will only be audited if you are not compliant. However, there is strong evidence to show that the ATO has reviewed many returns where no adjustments were required to be made.
As professionals, Quill can respond to queries and provide information to explain your position and we bring a skill in communicating with these government departments to advocate for your position. This means you can relax, knowing we are on your side and your costs are covered.
How do I get this insurance?
Our Audit Shield letters will be going out this month. They will include the Client Acceptance Forms, making it possible for our clients to take up this cover by the 31st August, or renew cover if already utilising this Quill service. These fees are tax deductible.
Should you have any queries relating to Audit Shield please call us to discuss.