Recognising the challenges faced by many micro enterprises in managing their tax and superannuation affairs, we actively support the majority who make sound and honest choices about their responsibilities.
Our support ranges from tailored information and tools to help them self-assess and report their tax and superannuation obligations, to working individually with micro enterprises that are struggling to meet their obligations, taking into account their specific circumstances.
Our activities take into account and support the vital intermediary role of tax practitioners in helping to manage the tax affairs of micro enterprises.
To identify unreported transactions that give rise to income tax, capital gains tax or GST liabilities, we match information from third parties against that reported by the business. Profiling is used to identify potential tax risks, such as businesses operating outside industry or economic norms. As part of our transparent approach to compliance, we publish these norms as benchmark ratios.
Information matching: joining the dots
We match information in tax returns and business activity statements with details of transactions reported to us by a wide range of third parties, including:
- payments and grants by other government agencies
- payments by businesses to contractors
- income from investments and partnership and trust distributions
- property and share transactions
- cross-border transactions and international funds transfer.
This range of information means we can build a complete picture of every business, including income earned, investment details, acquisition or disposal of assets such as real estate, cars and boats, and business connections.
Information matching is used to identify taxpayers who have failed to lodge tax returns or activity statements, under-reported or omitted income or transactions subject to GST, or failed to meet other obligations, such as excise, luxury car tax and superannuation guarantee obligations.
Sections within Micro enterprises
Last Modified: Thursday, 19 July 2012