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ATO Scrutiny

ATO Scrutiny in 2023: Key Focus Areas for Business Tax Returns

As the new financial year begins, businesses need to be aware of the Australian Taxation Office’s (ATO) intensified scrutiny in tax returns. Accurate reporting and compliance are crucial to avoid penalties and maintain a positive reputation. In this blog, we will discuss the key areas the ATO is likely to scrutinize in 2023 and offer insights on how businesses can navigate these challenges successfully.

COVID-19 Government Support Payments:
The ATO will closely examine how businesses accounted for and utilized government support payments during the pandemic. Maintaining detailed records and accurate reporting is essential. [Reference: ATO Government Support Payments]

JobKeeper Payment Scheme:
Eligibility and proper use of JobKeeper payments will be under review. Businesses must demonstrate compliance with criteria for receiving and distributing these payments. [Reference: ATO JobKeeper Scheme]

Cash Transactions and Reporting:
Businesses dealing with cash transactions must ensure accurate record-keeping and reporting. The ATO may conduct data matching to identify discrepancies. [Reference: ATO Cash Transactions]

Fringe Benefits Tax (FBT):
The ATO will scrutinize FBT claims, especially relating to company cars, entertainment expenses, and salary sacrifice arrangements. Adhering to FBT regulations and proper documentation is essential. [Reference: ATO FBT]

Research and Development (R&D) Tax Incentive:
R&D claims will be under scrutiny for eligibility and accuracy. Businesses should ensure claims are well-supported with documentation and follow ATO guidelines. [Reference: ATO R&D Tax Incentive]

In 2023, the ATO’s focus on tax compliance for businesses remains strong. By staying informed and implementing best practices, businesses can minimize the risk of ATO scrutiny. At Taxlink Professionals, we can help your business navigate these challenges while ensuring compliance with all tax regulations. Contact us today on taxlinkprofessionals.com.au/contact-us/ to book your appointment.