Red Alert - ATO cancelling ABN's

The ATO phoned me today and informed that they are planning to cancel one of my clients ABN's - the client has to provide the following documents to the ATO within 2 weeks. I am sharing this with you so that you are aware that the ATO's constant position against contractors in the ongoing 'employee/contractor' debate has taken a new turn. This is due to the ATO being successful in recent court cases surrounding the payment of commissions, per square meter rates, and other 'non hourly' pay rates where the ATO has successfully argued that these contractors should have been paid a wage and superannuation on top of the wage.

Here is the list of items that the ATO is requesting - for your reference:

• Business Plan and/or financial projections

• Business related purchases within the last 3 months - tools, materials/equipment

• Business Loan application

• Evidence of existence of a business bank account

• Professional membership

• Public liability insurance

• Commercial lease agreement

• Business card/flyers

• Business licence/accreditation

• Insurance certificate in entity's name

• Lease / purchase agreement for premises or equipment for the enterprise

• Contract agreement

• Application for finance

• Patent / copyright / business name registration certificate

• Business vehicle registration

• Business advertising

• Partnership agreement

• Website Address

• Quotes for services issued within the last 3 months

• 2 Invoices to different payers plus any 3 other items from the above list

• Note: Invoices must be less than 3 months old