Tax Mistakes to Avoid this End of Financial Year!
Published Jun 28, 2017
The ATO has declared war on individuals who claim higher expenses in their tax returns than average.
100,000 letters were recently sent to individuals asking for voluntary amendments to 2016 returns for such claims and if the ATO deem the amendments unsatisfactory, they will request an audit. Usually, it is the motor vehicle claim they target and the ATO is requesting significant evidence that individuals did in-fact use their vehicle as stated.
To keep in the clear this tax season, avoid the following 4 mistakes:
- Over claiming. Claiming more than you actually incurred is dangerous business and, with the increase in the ATO’s ability to monitor electronic data and bench marking tools, if an individual’s deductions exceed what the ATO considers satisfactory for the industry type, you will receive a letter to either amend your return or be prepared for an audit to prove your deductions are legitimate.
- Not keeping expense receipts and log books up to date. This is a common one but, with advances in technology, there are now many great tools available for capturing records and avoiding costly fines due to inaccurate records. The newly released Forsyths App features both automatic GPS tracking and a receipt manager which stores images of receipts and invoices at the touch of a button. The log book function allows trips to be captured, viewed and emailed straight from the app meaning no more log books disappearing, dry pens or missed odometer entries.
- Not taking advantage of insurance benefits. Ensuring you have private health insurance can save you paying the Medicare levy surcharge which can be more expensive than the actual insurance. Income protection insurance is fully tax deductible and also gives families security in the event of unforeseen circumstances. Staying in touch with your accountant regularly is one way of helping you save money and time.
- Not staying informed. History proves change and tax are inevitable so stay informed of what is coming and how changes may affect you and your loved ones. The Forsyths app sends push notifications direct to your mobile phone or tablet when news is released and due dates are approaching which is another way of staying on top of current affairs and news you need to know.
To discuss your tax needs further, phone 1300 447 007 or send an enquiry to our team online here. The Forsyths app is available free for iPhone, iPad and Android devices from the Apple and Google Play stores.
Apple Download: https://appsto.re/au/O1Rojb.i
Google Download: https://play.google.com/store/apps/details…