Situations that attract our attention include:
- incorrectly claiming deductions (see income and deductions for business) that decrease taxable income including from
- failing to add back non-deductible expenses in the reconciliation statement
- inappropriately valuing closing stock at below cost or replacement value
- payments made to related parties for services that either
- were not provided
- had no connection with earning assessable income
- undefined expenses
- using the trading stock election rules to lower the valuation of closing stock.
For more information on trading stock, see TR 93/23 Valuation of trading stock subject to obsolescence or other special circumstances.Incorrectly claiming deductions will attract our attention.