Ms Law has therefore urged businesses to consider the integrity of the underlying data they are processing through their accountants payable and accounts receivable systems to minimise the chance of being caught out.
Businesses are encouraged by the ATO, as a move towards a self-assurance model, to perform GST data analytics reviews, she said.
In conducting these reviews, she explained, KPMG regularly identifies transactions in which GST has been incorrectly reported as a result of:
• transactions being processed with an incorrect GST tax code applied;
• sales and purchase invoices being erroneously processed multiple times; and
• bad debts being written off without claiming back the GST.
According to Ms Law, the results of a GST data analytics review can also yield broader business insights, such as identifying:
• deficiencies in the accounts payable or accounts receivable processes;
• anomalies in the master supplier or customer data;
• opportunities to rationalise suppliers or make alternative invoicing arrangements; and
• opportunities to increase cash flows.
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