The Australian Taxation Office (ATO) has advised it will be commencing a series of random audits on 2015 and future tax returns in the hopes to gain back the estimated $3 billion in lost revenue.
The plan is to target deliberate tax evaders, as well as those making high claims or not confirming allowable deductions.
Roughly, more than two million business tax returns and 12 million individual returns are lodged with the ATO each year. Of those, around 350,000 returns are identified by the tax regulator as containing errors or omissions.
Due to the addition of new software the ATO will now be able to quickly cross-check every return against transaction databases. The majority of mistakes are from incorrectly inputted allowable deductions. Some of these deductions include:
- Clothing-related expenses.
- Gifts and donations.
- Home office expenses.
- Interest, dividend and investment deductions.
- Professional fees.
- Self-education expenses.
- Tools and equipment.
- Vehicle and travel expenses.
It is important you triple check all deductions to insure they are allowable and being submitted correctly. This is something your accountant can help you with. By following this simple step, it reduces your risk of being audited and means that you are unlikely to be contacted by the tax department for mistakes.
If you need help with this matter please contact us on 07 5444 1022 or email me at kylie@gpla.com.au