Proactive engagement with the ATO is critical, as early, thorough responses not only demonstrate a genuine intention to comply but can also prevent audits, minimise scrutiny, and significantly reduce ongoing compliance risks.
Background
The ATO has received nearly $1 billion in extra funding to increase audits, debt recovery and compliance enforcement. This means businesses and individuals should expect more reviews and correspondence, especially for overdue returns and outstanding debts.
Responding proactively and engaging early with any ATO correspondence is essential to close down reviews before they escalate into full audits.
Why Early Engagement Matters
Clients who respond early and comprehensively can:
- Address potential issues before they escalate.
- Reduce the risk of drawn-out, costly, and stressful audits.
- Provide information that dispels ATO concerns and clarifies transactions.
Vale Legal works with clients to review transactions and highlight any items that may attract ATO scrutiny. A strategic, proactive and well-prepared response can resolve matters efficiently and minimise further investigation.
Key Takeaways
- Respond early: Don’t delay when you receive ATO correspondence.
- Be thorough: Fully address the ATO’s questions to avoid escalation.
- Seek expert guidance: Strategic responses reduce risk and limit audits.
Conclusion
With ATO enforcement increasing, proactive engagement is more important than ever. Early, strategic responses can prevent audits, protect client interests, and resolve matters efficiently.
For guidance on responding to ATO correspondence or managing a review, contact Vale Legal.
