Small businesses lead the way on tax

31st Oct 2019

New research from the ATO shows the vast majority of our small businesses are doing the right thing when it comes to paying their tax.

Around 90% of income tax from small businesses is paid voluntarily without any intervention from the ATO.

What’s contributed to the positive result? Most small businesses use registered tax professionals to help them comply with their income tax obligations and have invested in record keeping software to help get their tax right.

While a small percentage of small businesses are deliberately avoiding their tax obligations (ie. intentionally under-reporting income, exaggerating expenses or operating outside the tax system), most are making unintentional mistakes. This is usually as a result of poor record keeping processes or because they don’t understand their obligations.

The ATO is working on simplifying small business tax obligations to make it easier for people to get it right.

Article: NSW Small Business Commissioner