The ATO is concerned that some businesses who have received the $20,000 to $100,000 cash-flow boost have made either an honest mistake or undertaken a fraudulent arrangement to increase the amount they receive.
We think that is a bit harsh.
They have also told us that Jobkeeper is on their radar too.
And we believe they have eyes on anyone receiving either Cash Boost or JobKeeper because in the last 2-3 weeks we have received as many audits as we would normally receive in an entire year.
They are specifically interested in our medical clients because many of our independent contractors are on wages as it avoids large quarterly payments which is paid personally.
These salary payments are high so most of our medical professionals received the full $100,000 cash boost.
But because income is not static the amount of pay changes and this gets the ATO interested.
If you have similar circumstances the chances are the ATO will be knocking on your door soon.
We have been successful in dealing with the ATO queries, but it does take up our time.
And this means we usually have to charge our clients.
In one case they had a cash boast audit and then 2 weeks later a separate Jobkeeper audit.
And because the questions the ATO ask is not simple and we have provide documents and evidence it is time consuming.
We are finding on average the cost is $2,000 per audit.
When the ATO do an audit they will freeze any payment until the audit is completed.
This is why we always recommend Audit Insurance. This is insurance where the insurance company pays for your accountant’s fee for an audit so it does not blindside you.
I always recommend it but in this this current climate – I think it as necessary as your Public liability or indemnity insurance.
