What are my chances of being audited?

Question

How many people does the government randomly audit - or do they only do it to people who they suspect of doing things wrong?

Answer 1

The website says that every company should expect to be audited about once every 5 years. And audits can be either random selection or based on some criteria that they would obviously never release! They are nothing to worry about if you have nothing to hide.

Answer 2

ATO does do random audits! Yes it audits any lodgement identfied as a risk, any activity/type of business that it thinks may be a risk ie Property/ construction, any lodgement having a risk component ie self education, dob ins, but it also does random audits simply because sometimes theres a systemic error in the computerised records of a business that is not obvious or the business may be relying on a book keeper that is not doing their job properly but the records seem ok to the business, resulting in errors that that the business is unaware of which can be very costly (ironically in a number of cases they were understating their expenses and over paying their taxes!)
I dont know the percentage of random audits and am not sure that that info is something that is publicly released anyway.

Answer 3

They have an idea where to go . or who to audit. Certain things tip them off.Only they know.

Bear in mind, they may start out looking at one thing, and if satisfied, that's the end of it. If they aren't satisfied, they will dig deeper and deeper.

f you feel you're right, don't be intimidated by the possibility of an audit. If you can show them proof and an explanation, no problem.

Try to get away with something, you might get audited every year forever.

The amount varies year by year. And they can tell the difference between an honest mistake and an attempt to hide income.

Answer 4

Like most government departments the Tax officxe is understaffed and overworked.

But if you come up on their radar they will audit you.

generally the tax office will pick an industry of interest and pay special attention to the deductions etc that come form those workers in that industry.

A few years ago Air hostesses tried to deduct makeup etc as a legitamate work related expense. Unlike them It didnt Fly.

This year it will probably be teachers and Police as they have been anoying the Government for pay rises.

Usually they announce who is going to be on their nuaghty list so pay attention.

If you keep your recipts and can justify your claims no problems, but if you cant it will hurt heaps.