The ATO is placing increasing reliance upon self-assessment by taxpayers and anticipates auditing all taxpayers at some stage. Most claims lodged in your return are accepted on lodgment but are potentially subject to later review with increased penalties being applied should there be an underpayment of income tax, even if it is unintentional. As a result, a greater onus is placed on taxpayers to ensure that Income Tax Returns are accurately prepared and contain no misleading statements or information.
We therefore request that before signing, you carefully review each return to ensure that, to the best of your knowledge, the following have been addressed:
- That all the claims for deductions and rebates that have been included, are based on your instructions
- That all deductions claimed can be sustained by the required records and receipts
- That all statements are correct, complete and not misleading
Further, the Income Tax Assessment Act requires that where items are used for both business and private purposes, appropriate apportionment documents to verify business usage need to be kept and that written evidence must be kept for at least five years.
If an answer to a question or any statement made in an Income Tax Return, or an attached schedule, appears to be incorrect, incomplete or misleading, please advise us so the return can be amended before lodgment.
Should you require any further explanation of the above, please do not hesitate to contact our office.