The ATO has recently come under fire for making errors when it aimed to eradicate its registers of what it believed was over 1 million inactive ABNs. Over 24,000 ABN holders were still using or planned on using their cancelled ABN. Sole traders and small businesses were the hardest hit. Even tennis champions Novak Djokovic and Rafael Nadal were booted off the register.
The ATO undertakes periodic sweeps to remove unused numbers and registrations “to ensure the integrity of the register.”
In media, the ATO has recently come under fire for other operational processes. In particular, the online tax system buckled under the weight of the end-of-financial-year rush. The ATO has also been criticised for facilitating tax avoidance from very wealthy individuals and large or multinational companies.
There is speculation that the ATO has tried to move too quickly towards automation after recent budget and workforce cuts. For ABN sweeps “the program identifies registrants that have not shown any signs of business activity in the last four years, such as not declaring any business income” an ATO spokesperson declared.
Objections relating to the ATO’s decisions concerning your ABN can be lodged within 60 days from the point at which the decision was communicated to you.
If you have any questions or queries regarding any of the above information; please don’t hesitate to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
