Private Groups and Risk
Following up on last month's feisty live chat, SME Community members were asked their views on the ATO's planned shift to a 'Private Groups' approach in assessing personal wealth.
Most members responded positively saying the concept made sense and was easy to understand - some added they were surprised the ATO had not taken this approach earlier.
A discussion on the Risk Differentiation Framework the ATO is now using within the small-to-medium enterprise (SME) market found most respondents aware of this approach to assessing risk. However while one of the intended benefits of using the framework is to provide greater transparency for SME's, some members were sceptical arguing their businesses already have comprehensive systems in place for identifying risk factors.
Sticking with the 'risk' theme members were also asked what their main areas of concern were when it comes to non-compliance. Most suggested there were no particular issues at all - strong internal processes, good record keeping and having quality staff ensured they were compliant. Employing quality external tax professionals was also important.
While some members did suggest payroll tax is perhaps one challenging area, the main issue for most seemed to be the non-productive cost to SMEs in meeting their ongoing compliance obligations.
Finally, a live chat on compliance was held with Assistant Commissioner Elizabeth Gamin who is responsible for compliance in the SME area. The chat covered many of the compliance issues facing business and provided insights into how the ATO case selects. Members of the community can access the transcript online.
Last Modified: Friday, 17 February 2012