Businesses choosing to use the new BAS lodgment system announced last week by the federal government need to be aware they are still required to keep clear records.
While these records will not be needed to calculate the information for BAS purposes (if businesses choose the estimate method of quarterly reporting), they will still be needed for basic business record keeping – primarily to ensure any Tax Office (ATO) audit runs smoothly.
Rick Matthews, the ATO's deputy commissioner GST, told a Senate Estimates Committee hearing that while the changes mean businesses only need fill out the "essential information" boxes, they still need to keep records relating to the other boxes.
In relation to audits and other compliance features of the tax system, Matthews said data would be accessed through business records and the changes would not reduce the information flow to the ATO.
To read more, go to
bizreview.