# Accountants Daily: ATO circles inactive ABNs in latest probe



## Jack Malarkey (Jan 11, 2016)

_Accountants Daily _

Tuesday 2 November 2021

Emma Ryan





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*ATO circles inactive ABNs in latest probe*

The ATO has reminded tax practitioners to ensure their client's Australian business numbers (ABNs) are sound with a new review set to identify those that warrant cancellation.

The Tax Office's review will seek to identify potentially inactive ABNs for cancellation.

"Your client’s ABN may be selected if they have not reported business activity in their tax return, or there are no signs of business activity in other lodgments or third-party information," a statement from the ATO stated.

The ATO flagged that it has made improvements to the ABN cancellation program by introducing a new automated process.

This, it said, "allows you or your clients to confirm if their ABN is still required via a secure voice response system".

"Remind your clients that any income earned under their ABN needs to be reported in their tax return, regardless of the amount," the ATO added.

"By keeping their tax obligations up to date we can see they are actively undertaking a business, therefore their ABN should not be cancelled."

In conclusion, the ATO noted that if the client's ABN is identified for cancellation "you may be contacted and advised what actions you need to take to prevent their ABN from being cancelled".

If the client is no longer in business, no action is required to be taken. If the client's ABN has been cancelled and they are still entitled to one, they will need to re-apply to reactivate it, the ATO confirmed.

Going forward the ATO noted its important for tax professionals to help ensure their client's ABN details are up to date.

"We find that Australian business number (ABN) holders sometimes forget to update their ABN details in the Australian Business Register (ABR) when their circumstances or details change," it said.

"...By keeping your clients' ABN details up to date you can reduce unnecessary contact from us."


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## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office:

Monday 1 November 2021









ABN intent to cancel program


During November and December, we may contact you or your clients to advise our intention to cancel their Australian business number (ABN), where there is evidence they are no longer carrying on an enterprise.




www.ato.gov.au





*ABN intent to cancel program*

We're reviewing Australian business numbers (ABNs) to identify potentially inactive ABNs for cancellation.

We've made improvements to the ABN cancellation program by introducing a new automated process which allows you or your clients to confirm if their ABN is still required via a secure voice response system.

Your client’s ABN may be selected if they have not reported business activity in their tax return, or there are no signs of business activity in other lodgments or third-party information.

Remind your clients that any income earned under their ABN needs to be reported in their tax return, regardless of the amount.

By keeping their tax obligations up to date we can see they are actively undertaking a business, therefore their ABN should not be cancelled.

If your client/s:

. ABN is identified for cancellation you may be contacted and advised what actions you need to take to prevent their ABN from being cancelled

. are no longer in business, no action is required to be taken

. ABN has been cancelled and they are still entitled to one, they will need to re-apply to reactivateExternal Link it: https://www.abr.gov.au/business-super-funds-charities/applying-abn

See also

See our practical tips about keeping ABN details up to date: Keeping ABN details up to date

ABR IntegrityExternal Link: https://www.abr.gov.au/who-we-are/our-work/abr-integrity

Last modified: 01 Nov 2021


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## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:









Is your ABN current?


Only active businesses should have an ABN. Check how to keep yours up to date.




 www.ato.gov.au





*Is your ABN current?*










*5 November 2021*

We've started reviewing existing Australian Business Numbers (ABNs), to identify potentially inactive ABNs for cancellation.

Your ABN may be selected if you haven't reported business activity in your tax return or there are no other signs of business activity in other lodgments or third-party information.

If we identify your ABN for cancellation, we'll write to you. If you still require your ABN we'll tell you exactly what you need to do to stop cancellation.

We cancel inactive ABNs to make sure information on the Australian Business Register (ABR) is correct. Emergency services and government agencies use this information during natural disasters and to identify where financial disaster relief is needed to help businesses.

If your ABN is cancelled and you need it later:

you can reapply for the same ABN if your business structure is the same
you'll get a different ABN if your business structure is different, for example you were a sole trader but you're now a company.
If we cancel your ABN and you disagree with our decision, contact us and we'll try to resolve the issue.

Remember, registered tax agents and BAS agents can help you with your tax.

*Find out about*

ABR IntegrityExternal Link
ABN entitlementExternal Link
*See also*

Contact us


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