Tax assurance when we identify a potential risk
We use a risk differentiation framework to tailor our engagement based on our understanding of your risk position, circumstances, choices and behaviours. For higher risk categorisations we provide increased support and engagement to help you get things right.
We also identify tax risks through data matching and referrals from other government agencies or the community. As you would expect, the intensity of our engagement varies with our assessment of your circumstances and our level of concern. We will try to choose an approach that minimises inconvenience and disruption to you.
Wherever possible, we aim to resolve straightforward matters through telephone calls, pre-lodgment correspondence, questionnaires or checklists. These types of engagements may include:
- raising awareness about the applicability of a new law
- verifying possible anomalies identified through data matching
- verifying the integrity of claims for activity statement refunds
- verifying the authenticity of new GST registrations
- seeking lodgment of schedules that should have been included with income tax returns
- requesting further information to support our risk assessment.
Where we suspect significant risks requiring further examination, we're guided by the facts of each case and generally conduct a review, audit or both. We'll be transparent about the nature of our concerns and provide opportunities for you to voluntarily disclose any known errors or misstatements. This voluntary action may lead to a reduction in the penalties that would otherwise apply.
If, during the course of the review, audit or both, we change our officer looking after the activity we will ensure they have gained familiarity with all the facts and issues involved, as well as its status so as to minimise any potential costs.
In some higher risk and limited circumstances, we may not contact you before assessments are issued. This might happen where there is the potential for dissipation of assets, or where such advice could compromise the investigation of another agency.
When a risk has been identified, our tax assurance process typically begins by contacting you to resolve or better understand the matter. If we find significant risks requiring further examination, we'll generally conduct a review, audit or both. At all times we'll be transparent about the nature of our concerns.