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Businesses cautioned about JobKeeper Audits

In a blog, Caitlin McKenna of Cooper Grace Ward Lawyers noticed that the ATO received  2,609 tip-offs about organizations getting to JobKeeper installments and is exploring a portion of those cases.

She said the ATO would target organizations it suspects of changing their turnover to meet the decrease in turnover test for the pertinent month or quarter.

This will incorporate organizations that have conceded giving clients arrangements, or have expanded their credit terms and reinvoiced clients in a later month.

“While there will be cases that fall inside the counter evasion arrangements in the JobKeeper legislation, different organizations might be trapped in the review despite working within usual business practice.

The ATO will determine that a business isn’t qualified for a JobKeeper installment if it results from a “plot” predominant reason for acquiring a JobKeeper subsidy.

Where the Commissioner finds wrongdoing, the business will be required to reimburse the JobKeeper installments and penalties and interest.

Ms. McKenna said the ATO has recent information coordinating procedures and gets tips from anybody worried that a business is mistakenly asserting JobKeeper installments.

Thus, she said it is essential for organizations to keep proof of:

  • the premise on which they have determined their decrease in turnover for the pertinent period, and
  • the business reason for any choices that may have prompted the business meeting all requirements for JobKeeper installments.

Further, Ms. McKenna said the applicable proof will rely upon the business’ conditions, yet may include:

  • correspondence with clients identifying with their capacity to pay on an ordinary footing
  • details of any applicable government limitations at a particular time
  • records demonstrating a decrease in client requests or inquiries
  • documents indicating changes in the business’ trading conditions.
  • financial examination of the business advantages of adjusting the strategic approaches’ to address changes in the market of other conditions (for instance, offering limits, expanded installment terms or different concessions to clients) and
  • directions to or correspondence with representatives clarifying why a business has changed its normal practices or has made a specific choice.

Businesses concerned about Jobkeeper claims can contact us for advice Ph (07) 3823 2344.