Every Tax Time, the ATO focuses on certain "hotspots" where taxpayers are prone – either accidentally or deliberately – to make errors. These are the areas it will concentrate its audit firepower on and for those who have made claims in areas which the ATO will be targeting, they can be a wake-up call both to ensure that you get it right this year and that you go back and check that you did it right last year.
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Letters are being sent out to Australian taxpayers who have fallen foul of the ATO's data-matching system. Don't fret if you get one.
Receiving one of these letters doesn't mean that the taxman is coming to to destroy your existence - it just means that something doesn't line up with your tax return and you're being given a chance to fix it.
Each year, the Australian Tax Office sets its focus on particular areas they'll be honing in on as they review tax returns and where we're trying to reduce our taxes. This year is no different with cryptocurrency earnings, money made from new platforms like Uber, home office expenses and work-related claims on their hitlist.
This tax season the ATO is coming after those who fudge their annual returns, sometimes helped by their tax agents, including claiming for expenses that have nothing to do with work.
Earlier this week, I reported on some data that came from the Australian Taxation Office (ATO) suggesting tax payers are skipping out on paying almost $9 billion through dodgy claims on tax returns.
The ATO has responded saying the methodology used in coming up with that estimate is sound and that the problems stem from a lack of thoroughness, sometimes as the result of tax agents as well as poor record keeping.
The Australian Taxation Office (ATO) says that almost $9 billion are lost through people making what it considers to be dodgy claims on their personal tax returns. According to the ATO, 93% of the 9.6 million Australians who file an individual return get it about right but the rest are a problem.
ATO Deputy Commissioner Alison Lendon said that in a recent review that common mistakes like claiming deductions where there is no connection to income or not having records to show that an expense was incurred affected seven out of ten returns the ATO randomly selected for review. Are that many of us trying to dodge our obligations or is the ATO trying to scare us just as we're getting our tax returns ready?
Earlier in the year, the ATO issued a warning, telling people to keep appropriate receipts and other documentation, particularly for what they call "other work-related expenses". And that warning is accompanied by ATO staff being directed to undertake random audits to make sure people are following the rules when it comes to work-related expenses. So, what can you do to ensure you aren't hit with any fines of extra payments to the ATO?
From 1 July 2018, if your business has 20 or more employees, you'll need to report employees tax and super information to the Australian Taxation Office (ATO) through payroll software works with their new Single Touch Payroll (STP) system. The move, which the ATO says will greater transparency and connect businesses to the ATO through their existing software.
If you engaged in a little "creative licence" while lodging your tax return last year, it's time to start worrying: the Australian Taxation Office (ATO) is still sifting through everyone's work-related expenses for 2017 and it reckons a lot of them smell fishy. A whopping $7.9 billion was claimed by Australian taxpayers for "other work-related expenses" last year.
Consequently, Australians are now officially "on notice" to have their receipts ready for inspection.
Missed the deadline to lodge your tax return? You’re not alone: heaps of Australians forget every year to file by the October 31 deadline.
Whether you’re behind by just one year or several, don’t panic. There are things you can do to stay on the ATO’s good side: but don’t dawdle. The longer you wait, the higher penalty you can pay – and those can reach in the hundreds of dollars.
If you plan to lodge your tax return yourself, you need to be aware that the deadline for lodging your return is only two weeks away. The latest date for self-lodgers to get their tax returns in to the ATO is 31 October 2017.
If you lodge after that date, you run the risk of incurring a late lodgment penalty of up to $1050. Here's what you need to know.
Tax refund season is well underway, and if you’re one of the lucky ones, you will have received a sizeable tax refund that you can put towards whatever takes your fancy. If you’re not so lucky, you may be wondering why you ended up with a much smaller amount than usual. Or worse – owe the ATO money. Here are five possible reasons your tax refund was lower than you were hoping for.
Unless you're dead, unemployed, or a moustache-twirling Monopoly Man, you're probably paying more tax than you'd like. If you're wondering where all that withheld money goes, you need to check out this interactive infographic - it breaks down how the government intends to spend $463.3 billion tax dollars in granular detail.
Many people are required to travel as part of their job. Work-related travel might be something as simple as a short trip to see a client for an hour or two or a prolonged trip lasting several days interstate or even overseas. Some of these travel expenses can be claimed at tax time - but you need to know which rules to follow.
Every financial year, the Australian Taxation Office (ATO) puts the spotlight on certain work expenses that people attempt to claim erroneously. Whether through genuine error or deliberate subterfuge, these dodgy deductions add up to millions of dollars in lost government spending - and they can land you in hot water with the tax man. Here are 11 claims that the ATO plans to target this year, straight from the horse's mouth.