• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/27/2013

Australia - Preparing for and effectively managing tax audits 

August 27:  Taxpayers need to be thoroughly prepared for an Australian Taxation Office (ATO) review, particularly if the taxpayers have been parties to complex transactions, merger and acquisition activity, or other similar transactions or activities.

Tax professionals in Australia have observed that the ATO has continued to asked taxpayers to provide contemporaneous evidence to support assertions made about tax positions taken.

Also, it has been noted that accurate recordkeeping is playing a key role in helping taxpayers manage an ATO review with minimal disruption to day-to-day operations. Keys to accurate recordkeeping can include:

  • Maintaining detailed, accurate, and timely records of transactions—including records about the taxpayer interactions and dealings with ATO review teams
  • Reviewing policies for written correspondence (including emails) that taxpayers would be satisfied providing to the ATO (or a court, if the dispute were to move to litigation) in support of the tax position adopted or subsequent actions taken

KPMG observation

Contemporaneous documentation and recordkeeping—covering the who, what, why, how, when, and where of the transaction—can be fundamental if taxpayers wish to manage an ATO review with minimal disruption to their business operations.

Read an August 2013 report prepared by the KPMG member firm in Australia: Key to managing ATO reviews

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For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

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Washington, DC 20006.


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