A Bill has been introduced to Parliament proposing to empower the ATO to issue what will be described as a ‘tax-records education direction’. ATO to be granted a new record-keeping sanction? Read on!
This is in response to a recommendation from the Black Economy Taskforce that tax-related record-keeping obligations should be clear and straightforward and that the ATO should have a range of administrative sanctions at its discretion.
If issued, the direction would require an entity (i.e., a taxpayer) to complete an approved record-keeping course where the ATO reasonably believes there has been a failure to comply with specified tax-related record-keeping obligations.
Such a direction would operate as an (arguably softer) alternative to the administrative penalties that can apply (and continue to be available to the ATO) where a taxpayer fails to comply with their record-keeping obligations.
It is proposed that such directions should only be issued where the ATO reasonably believes the taxpayer is not disengaged or has been deliberately avoiding their tax-related record-keeping obligations.
The ATO’s Record keeping evaluation tool can also help you.
Applying good record keeping practices now will make it easier next time you lodge. It’ll also help you track the health of your business.
Remember, registered tax agents can help you with your tax. DGL Accountants are here for you every step of the way! Give us a call should you require further clarification on correct record-keeping practices.
Ref: Treasury Laws Amendment (Enhancing Tax Integrity and Supporting Business Investment) Bill 2022