Review of your Income Tax Return by the ATO and Record Keeping
We have recently had a few requests for clarification on the length of time the ATO has to review your Income Tax Return and also the length of time you need to retain supporting documentation that has been used to compile your Income Tax Return.
- After a notice of assessment is received for an income tax return, the return may still be subject to further review by the ATO
- If such a review indicates any inaccuracy in income, deductions or entitlements, the ATO has the right to amend the assessment of the tax return within a time period called the period of review
- This period commences when the notice of assessment is received and the length of period varies depending on the taxpayers’ circumstances
- The period of review for individual taxpayers is two years but they are required to keep all the documentation they have used to prepare their tax return for five years from the day that the tax return was lodged
- The same period of review applies to small business entities and they are also required to keep all the relevant documentation for five years from when the business record is prepared or the transaction is completed, whichever occurs later
- There are several exceptions to these periods in some circumstances
- For more detailed information, please visit: https://www.ato.gov.au/Business/Starting-your-own-business/In-detail/Review-of-your-assessment-and-record-keeping/
Please contact Personalised Tax Services if you would like some assistance with this.