Audits

In most cases, the auditor will telephone you to:

• arrange a time and place for the interview
• explain the audit process
• give you an indication of how long the audit will take.

You must:

• take note of the name and telephone number of the auditor
• find out which records we need to see
• review the records before the auditor arrives to see if you have made any unintentional errors or non‑disclosures.

A voluntary disclosure to the auditor will save time and generally result in a lesser penalty.

You may wish to seek professional advice if you are dealing with complex matters.

You must, under law:

• give the auditor access to the records under your control
• answer questions relating to those records (unless they are subject to a valid claim for legal professional privilege).

Our auditors have the authority to:

• have full and free access to all 
  • buildings
  • places
  • books
  • documents and other records
• copy records
• seize and keep any instruments and duty statements where the correct duty has not been paid.

 

Before the audit

You have the right to ask the auditor:

• for a reasonable time to produce your records
• about the time and place for the audit
• to provide a letter confirming the audit arrangements.

During the audit

You have the right to:

• see the auditing officer’s identification
• involve your accountant or legal advisor in the audit process
• professional and courteous conduct from the auditor
• ask why you were selected for audit
• be asked unambiguous questions
• ask how long the audit will take
• receive a copy of any formal record of interview
• receive a receipt for any records taken away from your office.

After the audit

You have the right to:

• receive a full explanation of any adjustments made as a result of the audit
• explain reasons for any irregularities
• know if we have applied penalties 
• discuss the audit with the auditor’s supervisor.

You also have a statutory right to:

• expect your affairs to be treated confidentially
• object and appeal.

We will take into account the taxpayer’s degree of blame when deciding whether to apply penalties.

The auditor will determine whether an adjustment is due to:

• deliberate evasion or avoidance (including false transactions)
• carelessness, recklessness, unintentional error or honest mistake
• a contentious issue involving legal interpretation

or

• a voluntary disclosure.

Before applying penalties and interest, the auditor will:

• explain the relevant laws
• look at any extenuating circumstances that may influence the amount of penalty and interest.

Further information

Ask your auditor or contact us on 1300 300 734.

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