It’s more important than ever to lodge an accurate tax return as the ATO now has so much data to call on and to verify your tax returns. They are cracking down hard on fraudulent claims so don’t let an inaccurate Tax Return raise a red flag.
Claiming exaggerated or best guess expenses claims, with a lack of receipts and evidence, will often raise a red flag with the ATO.
The following two mistakes need to be avoided if you don’t want to place yourself on the ATO’s tax audit list.
1. Not providing proof of purchase
Without receipts for your expenses, you can only claim a maximum of $300 worth of work related expenses.
With our help, you may well find that you are eligible to claim more than $300.
This could increase your tax refund considerably, but, without receipts, it’s your word against theirs. The ATO says, no proof, no claim, so keep your receipts year-round.
If you claim and receive a bigger refund than you’re entitled to, the ATO can force you to repay the difference – with interest charged and with possible penalties added as well.
By keeping good tax receipt records, you can ensure that the maximum refund can be calculated and claimed.
2. Guessing your tax deductions and income
It’s vital to ensure that you use accurate figures when you enter your income, deductions, and the amount of tax you’ve paid into your tax return.
The ATO already has records of tax paid, so can compare what you enter against the information they have.
It might seem the quick and easy way to get your tax done by estimating these items, but inaccuracy is a tax return mistake that should be avoided.
All your entries must be completed correctly, as even a few dollars out of place can bring you to the attention of the ATO.
So by entering the actual and true amounts on your receipts into your claims, you will be safe from possible prosecution.
And by waiting until you receive your official PAYG summary before you complete your tax return you know your amounts will match the ATO’s records.
Don’t let your Tax Return raise a red flag with the ATO.
Give us a call before you do your tax, and we can more than likely increase your tax refund AND make sure its done right!