The ATO is ‘detecting and addressing’ recurring errors in specific industries when businesses have a turnover between $1 million and $10 million.

These industries include property and construction (including builders, contractors and tradies), and professional, scientific and technical services (including engineering, design, IT and consulting professionals).

• In these industries, the ATO continues to see recurring issues, including: omitted sales and income in BAS and tax returns, including income from related entities;
• overclaimed expenses and GST credits;
• private expenses incorrectly reported as business-related, or not properly apportioned between business and personal use;
•  failure to register for GST when required;
• incorrect claims for the research and development (R&D) tax incentive offset, especially for activities that do not meet the eligibility criteria; and
• not seeking independent advice from a registered tax agent, particularly in head contractor/subcontractor arrangements.

  By sharing the issues that it is seeing, the ATO hopes to help taxpayers running a small business in one of these (or other) industries to avoid common errors and get it right from the start.

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