Many people who do not reside solely in Australia – for example those with families overseas, those who have to travel overseas frequently for work, or foreign students enrolled in Australian education – are unsure about their residency for tax purposes.
Receiving a letter from the Australian Taxation Office (ATO) can be concerning, particularly if it is a ‘Final Notice to Lodge.’ This type of notice is typically a request to provide information, submit outstanding tax returns or business activity statements, or settle an outstanding tax debt.
The word ‘audit’ can send chills down the spine of small and medium-sized business owners. But why do ATO audits happen? Is there anything you can do to avoid them?