Tax Audits: How the Taxation Office uses Benchmarks

It's no secret that the ATO uses benchmarks to check up on businesses to figure out if the business is following their tax obligations.

Some of the benchmarks include: Rent to turnover, material costs to turnover and costs of goods sold to turnover.

The ATO will continue to add to list as they have recently done by adding: GST free sales to total sales and non-capital purchases to total sales.

To find out more read the following article about the ATO's Use of benchmarks:

http://www.tax-accounting-perth.com.au/the-atos-use-of-benchmarks-for-tax-audits/