ACCC to investigate ATO for promoting price fixing

Question: I operate a business suplying and installing solar power systems at residential properties. I am a one man show. I do get help from my wife with the admin side of things though. Occassionally I need to engage some contract labour to help with installations. About 3 months ago I got a letter telling me I am being audited by the ATO. Last week I received some interim audit report saying I've earned an extra $180,000 of income. It even says I have to pay a 75% penalty for "intentionally disregarding the tax law".

To compete with the big players in the market, I sell the hardware for a low markup and rely on the installation cost to get by. The ATO says I'm supposed to use the same markup as everyone else in my industry or I must be defrauding the ATO. Is this right? Or is it some kind of price fixing?

Small Business Owner, Adelaide, SA

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