ATO could cancel your ABN if there is no business activity detected
Australia's Tax Office has issued an important announcement regarding ABN holders. The Australian Business Number (ABN) is a unique 11-digit number that identifies your business to the government. Taxpayers are required to register for an ABN for certain tax purposes, such as goods and services tax (GST) and pay as you go (PAYG) withholding. As stated in this recent announcement by ATO, an ABN could be flagged for cancellation if the holder has not reported business activities in their tax returns, or if there is no evidence of business activity in other lodgements or third-party information. In the event that an ABN has been identified as inactive, the ATO will notify the holder of the next steps, whether they are to reactivate or cancel the ABN.