Commissioner’s speech to COSBOA Small Business Summit

In a speech to COSBOA last week, the Commissioner said the ATO will be very publicly targeting:

• Lack of, or inconsistent, record keeping

• Personal expenses described as business expenses – such as the family car, family holidays or school fees

• Incorrect use of ‘loan accounts’, constantly borrowing from the business but never paying back, so effectively living off the business

• Structuring beyond the business capabilities – very complex trust structures for simple businesses, with no concept of how the structures interact with the business, or the real tax implications

• A mismatch between BAS information and the income tax return

• Businesses who continue to trade although insolvent, and

• Those involved in the black economy.