CATS4TAX – Tax Tip #3
When lodging your tax return the last thing you want is to draw the attention of the Tax Office. Several things can make you stand out.
Not including all your income – the ATO has information sharing with many organisations. They also have the ability to track income through Ebay, Airbnb etc.
High claims/unusual claims – they look for outliers. Your occupation & salary level is compared against taxpayers with the same occupation & salary level. They examine the amounts & types of claims. If your claim is high/unusual in comparison you stand out.
Where your deductions don’t change from year to year – there are no standard deductions. Taxpayer’s are expected to keep receipts for all deductions. Particularly this year, due to COVID, the ATO is expecting deductions to differ from previous years.
Keeping good records is the key to claiming all the deductions you may be entitled to and ensures a better outcome than relying on memory. Should you be audited, you are able to prove your claims.
The ATO website has fact sheets to assist taxpayers. If you need advice seek the assistance of a tax professional.
Get in touch with CATS4TAX:
0404 483 685