Is the ATO after you?
Micro-business owners and individuals are asked to take extra caution about getting their work-related tax claims. According to a report from Smart Company, the Australian Tax Office is now rolling out real-time checking so people can check their tax returns.
Employees usually manage their annual tax returns online but most business operators often prepare their tax returns on their own.
According to the tax office, around 450,000 reviews and audits of individual taxpayers in a 2014-2015 financial year, including reviews and audits, resulted to revenue adjustments that account for more than $1.1 billion in income tax.
ATO compares individual tax returns through data analytics based on those submitted by taxpayers in similar circumstances. Should there be a red flag, then an ATO staff will review the tax return. This will then most likely result in delays in processing returns. A penalty is charged to the person who claimed the wrong amount deliberately.
“If your claims are substantially higher than others in similar occupations, earning similar amounts of income, a message will appear, asking you to check them,” ATO assistant commissioner Graham Whyte said in a statement.
“This new process is just about helping you to make sure your claims are correct.”
“If you are doing the right thing you have nothing to worry about. If you make a mistake we will help you fix it up and correct your tax return. We will not penalise you if you genuinely tried to get it right.”
If you’re worried about getting your tax claims wrong, then it is best to speak to the experts like your local accountant, bookkeeper or tax agent.
Tradebusters Connect offers a credible list of recommended and vetted accountants, bookkeepers and other professionals that can assist with your situation.
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