The Australian Taxation Office (ATO) is responsible to the government and the community for collecting the revenue and ensuring that everyone pays the correct amount of tax.
A tax enquiry or audit is an examination of your tax affairs by the ATO to see if you have done what you are required to do under the tax laws, including whether you:
- have declared all the assessable income you receive
- are entitled to the deductions and tax offsets you have claimed on your tax return.
We assume that you are trying to deal honestly with your tax.
The enquiries or audits we conduct vary in their complexity. Sometimes they only involve a phone call or a letter asking you to provide further information or verify your claims. In some cases a tax officer may visit you. In some cases you may be asked to bring all your records for examination.
We sometimes decide to look more closely at tax returns making similar claims, or from within the same industry. We can request the records and paperwork you used to complete your tax return.
It is also possible your tax return has been audited without your knowing about it. The ATO receives information from a number of sources as a matter of course. For example, banks are required to give us details of how much interest each account held with them has earned. Using this information, it is a simple check (audit) to see whether or not taxpayers have declared that interest in their return.
We also cross-reference Centrelink payments with tax returns.
We will send you a letter if we detect that an amount is missing on your tax return. If you agree the amount should be on your return you don't need to do anything, we will issue you with a Notice of amended assessment telling you how much you need to pay. This may include interest and penalties. If you disagree with us, the letter will tell you what to do.
Last Modified: Friday, 5 October 2012