By definition, Australian Business Number or ABN is an 11 digit code that is allotted by Australian Business Register in order to get a business started under the assistance of the Australian Taxation Office (ATO) in Australia. More often than not, successful ABN applications demand authentic business information and verified documents to get going. But, if you are a newbie in Australia with a dream to start a business, there are chances that you may decline your potential of getting ABN soon because of the following very common mistakes. So, let’s learn about these mistakes beforehand and get your ABN swiftly with ABN master. Know about common mistakes while applying for ABN:
When it comes to discussing an ABN-related matter with the ATO, it is very significant to take care of what type of statement you are making. It is because all ABN-related information communicated via electronic media like email or even phone calls are recorded. In this case, before allotting an Australian Business Number, the official authorities check all the statements and process verification. In case you have made any wrong statement, your ABN application may get blacklisted right away.
Apart from this, you may also have to tackle a penalty situation by the Australian Government. This may cost you up to $10, 200.
Not rectifying your mistake
One of the several mistakes that entrepreneurs make while applying for an ABN is not rectifying their mistake even after acknowledging that they have made a wrong or misleading statement. If you have made an honest mistake, you can write an official apology to the authorities along with providing the correct details.
More often than not, people hire a registrar tax agent to write a statement on the applicant’s behalf. This can lead to unintentional wrong statement editions in your application. In this case, you can write to the ABN authorities by providing them enough proof of documents that will help them verify your new statement.
Subcontractors Vs. Employees
Business can be a complex subject and so does business tax. More often than not, entrepreneurs hire their employees in the name of subcontractors in order to get away with their additional obligations such as payroll taxes. However, what you may not realize is that – under the guidance of ATO, the definition of Subcontractors and employees are different. And thus, if you do not run and categorize your employees based on these definitions, you will have to fulfill steep financial penalties.