In the context of the ATO Green Book, what is a key aspect of maintaining proper records?

Maintaining proper records is crucial because it serves as vital evidence to substantiate claims made on tax returns and during audits. When taxpayers keep detailed and organized records, they can provide documentation that supports their income, expenses, deductions, and other tax-related entries. This practice not only helps ensure accurate tax reporting but also protects individuals or businesses from potential penalties from the Australian Taxation Office (ATO) if questions or disputes arise regarding tax filings.

Additionally, well-maintained records can facilitate more straightforward interactions with the ATO, should investigations or audits occur, thereby minimizing the risk of adverse outcomes such as fines or other sanctions. Accurate record-keeping aligns with compliance expectations and helps maintain the integrity of the tax system, ultimately benefiting both the taxpayer and the ATO’s operational needs.