25 May 11
Government stimulus payments - compliance project
The ATO advises that it has started a compliance project that focuses on businesses that received government stimulus payments.
As part of this project, the ATO has now received information about payments made to businesses under the Home Insulation Program and Building Education Revolution. This information has been compared to ATO records to work out whether these businesses have reported the amounts they received in their business income tax returns and activity statements where applicable.
The ATO will take a wide range of approaches to deal with businesses that have received stimulus payments, depending on their level of compliance. This includes using small businesses assistance programs, advisory letters, reviews, audits, default assessments and prosecutions.
For more information go here.