Tax lawyer to help you with an ATO tax audit
If you are under a tax audit by the Australian Taxation Office (ATO), you should contact King Lawyers immediately for legal advice and representation.
King Lawyers has successfully managed hundreds of tax audits for individual and business clients, and achieved great results for them.
Personal tax audit by the ATO
In a personal tax audit, the ATO is usually looking at your personal tax affairs to ensure that the information you have given the ATO is accurate and you have complied with your tax obligations in Australia.
If you are an Australian resident for tax purposes, then you must pay income tax in Australia on your worldwide income. Therefore, the ATO may ask you questions about your financial transactions in Australia as well as your international money transfers and transactions.
As part of this audit, the ATO may request information from you or require you to attend an interview with the ATO in person.
Once you have provided the required information to the ATO, the ATO may verify the information provided by contacting third parties such as banks, employers, customers and suppliers.
When the ATO has completed its tax audit, the ATO will usually send you an audit position paper, which outlines the ATO’s preliminary findings and decision on the audit case.
At that point, the ATO will give you an opportunity to respond to the audit position paper before the ATO makes a final audit decision and issues an amended income tax assessment or penalty assessment.
If the ATO finds any mistakes in your tax affairs, then the ATO will usually apply very heavy penalties in addition to the tax shortfall. Therefore, to get the best outcome and minimise the ATO’s penalties, it would be best to engage an experienced tax lawyer to help you with the ATO tax audit and give you legal advice and representation.
In some serious tax matters, the ATO may also consider criminal action against taxpayers. If you are prosecuted by the ATO for tax fraud, the maximum penalty in Australia is 10 years imprisonment.
Business tax audit by the ATO
In a business tax audit, the ATO is usually looking at your business tax affairs to ensure that the information you have given the ATO is true and correct and your business has complied with its tax obligations in Australia.
The most common audits for businesses in Australia are income tax audits and GST audits. However, the ATO also conducts other business tax audits, such as superannuation audits, PAYG withholding audits and FBT audits.
The most common errors found by the ATO in tax audits are underreported business income, overclaimed business expenses and incorrect record keeping. Those issues usually have income tax and GST implications for the business and can result in a big tax bill from the ATO for additional tax, penalties and interest charges.
If any mistakes have been made in your business’ income tax return or business activity statement, the best forward is usually a full and detailed voluntary disclosure to the ATO. However, you only get one shot at this. Therefore, it is important to get this right and engage an experienced tax lawyer to help you with the voluntary disclosure.
Tax lawyer and tax accountant working together for your ATO tax audit
Do you need a tax lawyer for your tax audit if you already have a tax accountant?
To get the best result for your ATO tax audit, it is often necessary that you engage an experienced tax lawyer and a good tax accountant to work together and get the best possible outcome for your tax audit.
Do you need legal advice from an experienced tax lawyer for your ATO tax audit?
This content of this article is offered as general information only and should not be relied on as specific legal advice for your ATO tax audits.
To get legal advice from King Lawyers on your specific circumstances, please contact us to arrange an initial consultation with our expert tax lawyers.