The ATO has recently advised that, in an effort to maintain accurate data, the Australian Business Register (or ‘ABR’) periodically checks its records for Australian Business Numbers (‘ABNs’) and automatically cancels those that appear inactive.
Ultimately, a taxpayer’s ABN may be cancelled if they:
- have told the ATO they stopped their business activity;
- declared no business income in the last two years; or
- have not lodged a BAS or an income tax return in more than two years.
To avoid cancellation, the ATO has reminded taxpayers that they need to bring their lodgments up to date, and have reminded sole traders that, regardless of their income, they need to lodge the individual tax return with the supplementary section, as well as the business and professional items schedule.
Do take these notices seriously, unfortunately the ATO does not mess around in this case and unfortunately they even manage to cancel legitimate ABN’s in the process (don’t get us started on this very frustrating topic!).
If you are struggling with your paperwork, make sure you contact your boring accountants.
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