Tax Office Cash Sale Benchmarks
Cash Sales - New Tax Office Benchmarks!
Are you? - A small business owner?
The Tax Office recently released a new category of small business benchmarks which focus on cash sales within a business.
You should be aware of the new benchmarks for small business.
- Contact us if you require any clarification or advice.
The small business benchmarks were introduced by the Tax Office to provide a tool for assessing the performance of a business as well as checking the reasonableness of various costs incurred in the business relative to its turnover.
The benchmarks provide a means of assessing what is happening in a particular industry.
The Tax Office has announced that it will be using the cash sales benchmarks to determine the proportion of cash sales a business should be making to identify businesses that may be avoiding their tax obligations.
The cash sales benchmarks have been initially developed for the following industries:
· Clothing retailers;
· Beauty Supplies;
· Coffee Shops;
· Fruit and Vegetable retailers;
· Fuel Retailers;
· Garden Supplies retailers;
· Grocery retailing and general stores;
· Hardware and building supplies retailing;
· Meat retailers and Butchers;
· Pubs, taverns and bars;
· Restaurants; and
· Takeaway food services
Small businesses that are found to be falling outside the benchmarks for a particular industry will be more likely to attract an audit by the Tax Office.
The Tax Office estimates that it will contact over 100,000 businesses this year.
For more information on small business benchmarks, visit the ATO website at www.ato.gov.au.
Remember: - Ensure you report all your income, including cash sales, in your income tax return.
For further information contact A Grade Tax Accountants Penrith on (02) 4731-1405 for tax advice, service and taxation solutions for our clients.
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