Hi, I’m Nick I’m Adam today. We’re talking about what to do in the event of an audit. So audits can be pretty stressful time, but they don’t necessarily have to be. So today we’re just going to go through some tips of what to do during an audit. And we’re also going to talk about what are the common causes of triggering the ACO. So some of the things that do trigger an audit, CGT events, so selling an asset, receiving quite a high capital gain the HR will sometimes look into that. They will also look into a high level of deductions. So a lot of you, if you have completed your own tax return, you might say a warning pop up from the ATO saying that for your industry, your, your deductions are quite high spot on for a lot of people, but for something we’ll be able to actually trigger a, an order from the ACO, but usually you get those books first.
So the other thing will be a substantial change in your tax position. So if you’ve been paying installments, because you’ve historically been getting a tax bill each year, and then suddenly you’re getting a tax refund and you’re getting all your installments paid back, the ACO might look into that. So that’s something to remember as well. The majority of the time for these sort of events, they’re all pretty well explained. And the ATO will ask the question. We will send them the information and it’s all bots. There are a few things you actually need to do for us to be able to get a clear slate with the ITO. Yeah. So as Nick was just lazy, you can reduce the severity and basically the stress of an audit. And they’re fairly simple steps that you take. So obviously one is keeping receipts for deductions.
They’re fairly straightforward. Everyone knows this. It’s also why when we have requested information is because basically we want to have it on the phone, just in case the tax office does ask the question. We’ve already got it on file. And we just basically put that off to them rather than having to call you. You having to go through records for the last week is so good. Red bull is okay. So obviously if you want to, like, we’re happy to have full digital receipts here in that we use our client portal and that is a good way other document storage system for you. And then that way, if it is able to, like, you’re not trying to go in there.
So that’s a pretty key one, make sure you’ve got the receipt there and you’ve got the safe spot usually. And the ATO are happy with scan copies and the photos as well. So you don’t need to keep books. Another key point is communication is key. So communication with us, us communicating with you, and basically everyone communicate ago with the audits that we’ve had in the office. Basically the ones that have gone really well is when basically we propose, communicate to the case officer saying, Hey, yeah, we’re onto it. Thanks for your email. Start getting this together. We’ll get it to my say, two weeks time. And then we make sure we get it to them within basically a week that keeps it pretty happy. So following from that, obviously with information requests, give the ACO what they asked for and just don’t provide it rather than documents, because if you get them to relevant documents, even if you think it’s a trivial receipt or something, it can trigger an action.
So what we like to do is basically we answer the questions that are asked and nothing more helps speed up the process, keeps them focused on what they actually want. Originally white blood, along with that, obviously with that communication, it needs to be formal. So don’t be fairly blahzay casual with them. Like it’s still audit and that, and they are doing it for a reason. So something’s obviously piqued their interest. So as long as you keep your thing, professional, courteous, again, you’re going to keep page here deciding how to speed up the process. Obviously, if you are getting all to contact us, let us be the conduit for everything helps again, helps speed up. The process is only one person providing the info also helps relieve some of the stress on you because you’re not having to feel all the questions. And we can just ask you for the relevant don’t have it.
Yeah. And then basically with that, where you can basically ensure we only send the relevant documents. And if that review officer asks for something that doesn’t relate to this particular part of the audit without due reason, basically we politely declined to that information as well. Yeah. So that’s pretty much the steps you need to take things. Remember it’s just cooperation is key. So the more cooperative you are, the more clear the information that you’re giving is the easier the ICO. If they have too few, if it looks like your intention leader, swapping them with information and trying to make waters, they’re going to react in kind. And again, he’d be brave. And they told them, what are we going to come down? So I cooperate be clear up to the information provided and don’t stress because stressing out can be private for everyone. And that’s what we’re here for. That’s why we ask the annoying questions during the year for these real estate release. That’s leading up to just in case you will. So yeah, hopefully that helps relieve any sort of pressure. You’re feeling very stressed about the subject and it doesn’t happen to you, but if it does, what is he to help? Thanks for listening. Yes.