The ATO has commenced reviewing the eligibility of businesses that have accessed the JobKeeper scheme, with the intention to review all enrolled taxpayers within its top 500 private group program, as well as a broad range of taxpayers outside of that group.
The compliance phase of the JobKeeper program aims to verify that businesses that are currently receiving (or have previously received) JobKeeper payments are eligible to do so.
How can your business prepare for an ATO review?
It is important to prepare your business in advance of a potential ATO review of your participation in the JobKeeper scheme by ensuring you have evidence of:
- The calculation of the qualifying decline in turnover, including supporting workpapers
- The approach taken to calculate GST turnover and any adjustments made
- The application of any alternative test
- The assumptions, methodology and any projections that underpin the calculations
The relevant evidence will depend on each business’s circumstances, but it is clear from ATO guidance, public statements and from the JobKeeper reviews that have already commenced that the ATO expects documentary evidence to be provided as part of the review process.
In addition to the sophisticated data matching processes at the ATO’s disposal, the ATO has also confirmed that a significant number of tip-offs have been received from the public regarding businesses incorrectly claiming JobKeeper payments. Businesses should therefore ensure that they have assessed their eligibility correctly and that they hold sufficient evidence to validate and support the decision to enrol in JobKeeper.
What are the next steps?
It is prudent to review and collate the documentation and other evidence that supports your business’ decision to enrol for JobKeeper payments and ensure that you are adequately prepared in the event of an ATO review.
Pitcher Partners can assist you with reviewing your JobKeeper eligibility and relevant documentary evidence. We can also assist with the management of an ATO review, including working with you to ensure that your documentation and responses to the ATO’s questions are complete.