TAX AUDITS AND TAXPAYERS RIGHTS

Course overview

This course provides an overview of the Australian Taxation Office (ATO) tax audit process, from initiation to completion. It explains how and why tax audits are conducted, the obligations of the ATO and taxpayers during an audit, and the rights and protections afforded to taxpayers. Participants will also learn about the ATO’s information-gathering powers, modern e-audit techniques, potential audit outcomes (such as penalties), and key concepts, including legal professional privilege and the accountants’ concession.

Course Objectives

• Understand the purpose of tax audits and the circumstances under which the ATO may initiate one.
• Explain the typical tax audit process and the ATO’s obligations to taxpayers during an audit.
• Outline the formal powers available to the ATO to obtain information (notice-and-access powers).
• Recognise how technology (e-audits and risk assessment tools) is used in the tax audit process.
• Identify the outcomes of a tax audit, including assessments, penalties, and taxpayer rights and remedies.

Learning Outcomes

• Define what a tax audit is and distinguish it from routine reviews.
• Describe each stage of an ATO audit, from the initial contact and information gathering to finalisation of the audit.
• Demonstrate knowledge of the ATO’s formal information-gathering powers and how taxpayers should comply with or respond to these powers.
• Explain the use of electronic data audits (e-audits) and tools like Information Systems Risk Assessment (ISRA) in modern tax audits.
• Advise on taxpayer rights and responsibilities during an audit, including how to manage audit outcomes, penalties, and privileged communications (legal professional privilege and the accountants’ concession).