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NTAA warning on tax claims

The NTAA, in announcing its Tax Schools for 2018, has issued the warning regarding tax agents over-claiming work expenses - refer article below.

Our policy is to claim everything to which you are entitled under the law.

You can maximise your claims by ensuring you record all your expenditure throughout the year and keep receipts to substantiate that expenditure.

The key for the tax agent is to know what can and cannot be claimed.

The ATO has, year-on-year, issued warnings about employment categories that they will be targeting.

I have never seen this as an issue, nor has it been an issue for my clients, as I have consistently maintained my knowledge of legislation through ongoing education, reading and communication with the ATO.

Further, to assist clients with record keeping I have partnered with myProsperity, though Grange Park Consultants, to provide an online system that

  • automatically records and classifies expenditure on an ongoing basis

  • keeps track of all your assets and liabilities

  • is a secure store of important documents

For more information on getting your own Wealth Portal click here

Tax Agents in the ATO’s Firing Line over Work Expense Claims!

The ATO has repeatedly warned tax agents about over-claiming work expenses, in light of an extremely high error rate identified for these claims in recent audits.

Those claims mostly under attack by the ATO include the following:

  • Travel allowance expense claims up to the ATO’s prescribed reasonable amount.

  • Car expense claims under the ‘cents per km’ method.

  • Work expense claims of up to $300, and laundry claims of up to $150, where receipts are not required.

To make matters worse, a flurry of recent Tribunal decisions have confirmed ATO imposed penalties (of up to 50% of unpaid tax) for incorrect work expense claims made by tax agents.


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