What is a recommended approach when facing potential adjustments or disputes during an audit?

Cooperating fully with ATO representatives during an audit is vital for several reasons. Open communication can facilitate a smoother audit process and help clarify any misunderstandings or discrepancies. By providing requested information and being responsive, it demonstrates transparency and a willingness to resolve issues, which can lead to a more favorable outcome.

This approach can also foster a constructive relationship with the audit team, potentially leading to quicker resolutions of disputes. Moreover, it can help in establishing credibility, showing that you are compliant and engaged in the process.

In contrast, delaying responses, seeking immediate legal counsel without first attempting to cooperate, or refusing to provide additional information can complicate matters further. Such actions may lead to misunderstandings, increased scrutiny, or even penalties. Therefore, being proactive and cooperative is the most effective strategy when faced with potential adjustments or disputes during an audit.