The ATO has released a tax time toolkit to help small businesses and their tax professionals nail their income tax returns. It has also flagged what it will be focusing on for small business tax returns for 2021–22:
- deductions that are private and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a home-based business)
- omission of business income, for example, revenue from the sharing economy or new business ventures
- record-keeping – including insufficient or non-existent records that are needed to substantiate claims.
Should you have any queries, please do not hesitate to contact the AFP team.