Top 5 Common Mistakes That Are Easily Detected By The ATO

 

Filing for a tax return is a roller-coaster ride. It can be extremely complex and full of hustle. As you have to take care of numerous things simultaneously, you are bound to commit mistakes. It is extremely essential to avoid even a small error as it can cost you huge. Moreover, nothing can escape the ATO's eyes.

A tax return is an ‘honesty test' by an ATL and you just can not afford to fail. Thanks to advanced technology and data means, ATO collects a huge amount of information about you. The ATL can see it all.

So, here is the list of 5 common mistakes that you need to avoid as they are often flagged for investigation at the ATO.

1.        Wrong income and tax paid estimations 

You need to be very conscious while sharing your income details and tax paid in previous years with your tax agent. As I told you earlier, ATO has all the records, so they can cross-check all your details. It will be a wise decision to hire a tax agent as just a few out of place dollars  can attract the ATO's attention.

 So, you need to ensure you use accurate figures when you enter your income and tax have paid to avoid any ATO's inspection. 

2.       Be aware of your tax deductions 

The ATO has become obsessed with the tax deductions claimed by ordinary Australians. So, don’t exaggerate your tax deductions as the ATO analyses every item you claim. 

It is advisable to save the receipts right when you purchase so you don’t have to hunt for them later and enter the real and exact amounts from your receipts into your tax return. It is best to sort these things in advance. 

3.       Don’t forget the overseas revenue 

People who work overseas often forget to pay their Australian taxes. Some even think that they don’t need any taxes. But this can catch you in trouble as even if you’re living or working overseas, you have to lodge an annual tax return. Overseas income includes pensions, employment income, investment income, business income and gains in overseas assets. 

4.       No proof means no deductions 

Not having receipts as proof of your purchase is a blunder and unfortunately, many people commit this. Without receipts, you can only claim up to $300. Anything beyond that will require proper receipts. 

So, now when you know the importance of having receipts, save receipts into your Etax account. Don’t miss out on any deductions you deserve.

 5.       Don’t hesitate to hire a tax agent 

Lodging a tax return Sydney is not a cakewalk and you need an expert to help you with this. So, don’t have a second thought while hiring a tax agent to handle your tax returns. 

74% of Australians hire a tax agent as it makes the work easy and hustle free from them. Moreover, hiring an agent can guarantee you a maximum tax return and zero errors. 

Summary 

Being in the ATO's spotlight is something none of you will ever wish for. So, it is extremely imperative to lodge an accurate tax return so you can avoid getting into hot water with the ATO. 

Have a look at the above-mentioned mistake and try to file an error-free tax return.


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