With the end of the financial year approaching quickly (yes – it’s that time of year again!), your attention (should) be on preparing your accounts ready for tax return submission.
The Australian Tax Office is making it a priority to investigate individuals who make excessive claims and ‘mistakes’ with tax deductions. There is an emphasis this coming year by the ATO to reduce the ‘tax gap’; the difference between how much the ATO collects and how much it should – if all taxpayers complied with the law.
It is important for all tax payers – individuals as well as business – to understand what can or cannot be claimed. In this case, ignorance is NOT bliss. Deductions are only allowable if the expense has been paid for and not reimbursed, directly related to work and not a private expense. Any claim MUST have readable proof by way of supporting documents (faded receipts will not be considered).
To book in an appointment to help you prepare for the next tax season – give us a call on 3351 6111.