"Today we received notification of the proposed cancellation of ABN registrations on behalf of a number of clients. If the client agreed, no action was required. If the client disagreed, then a 4-page form had to be completed and returned within 28 days.
It is stated that “you have not reported any business income in 2007 and 2008”. In over half of the cases the 2008 has not yet been lodged. Others are based on 2007 & the 2008 will show a business income. Yet others require the ABN because their activities are caught by the non-commercial loss regime and the individuals have not shown the NCL on their returns. Others involved were clients who move in and out of the ABN income areas. If cancelled they will have to reapply again and again.
Could we suggest that representations be made urgently to the ATO to revisit the cancellation policy with a view to streamlining the administration in order to prevent a waste of time and resources at this ‘quiet’ time of the year? The thought occurs that if an individual has a TFN for life, why couldn’t the ABN for be for life? Surely the quotation of the ABN would facilitate ATO audits."