ATO Audit Blog
What is an ATO Audit?
An ATO Audit is when the ATO requests to review your tax records and financial information to ensure compliance with the Australian Tax Law. The ATO may conduct audits randomly or due to a specific concern, such as data matching discrepancies in tax filings. Audits are part of the ATO’s efforts to ensure that taxpayers are meeting their obligations under the tax laws
What Can the ATO Ask For?
During an audit, the ATO has the authority to request a wide range of documents and information, depending on the scope of the review. Common requests include:
Financial records: Bank statements, receipts, and invoices.
Tax returns: Copies of past tax returns, amendments and working papers.
BAS Returns: Copies of lodged BAS’ and BAS reconciliation
FBT Returns: Copies of lodged FBT Returns, working papers.
Business records: Payroll, sales, and expense records if applicable.
Supporting documentation: Any documents that support deductions or credits claimed on your tax return.
Audit Outcome Letter
Once the ATO completes its audit, you will receive an audit outcome letter. This document outlines the findings of the audit and any adjustments to your tax obligations. It may confirm that your tax return is accurate or require you to pay additional tax, penalties, or interest. The outcome letter may also recommend changes in your future tax reporting practices or offer suggestions to improve compliance.
Receiving this letter is an important step, as it marks the conclusion of the audit process. You’ll need to review it carefully, ensure you understand the findings, and follow any instructions provided. If you disagree with the findings, the letter will also outline how you can dispute the outcome or seek a review.