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The Australian Taxation Office (ATO) is closing in fast on everyone who doesn't properly declare their income. As your tax accountants, we want to help you be aware of what the ATO is doing and how you can protect yourself.
The ATO is linking database of property sales, car purchases, international plane flights, dividends paid from shares, and sales of shares and investment with the income declared on your Tax Return
If your Tax Return income doesn't match with your spending or repayment of loans, then ATO will probably 'red flag' you for a tax audit.
These databases have not been linked before like this, so we're expecting to see a huge increase in the number of tax audits over the next 12 months.
Many small business owners pocket some of their cash taking each week and don't declare this in their Tax Returns.
When your business Tax Return is lodged, the ATO compares your profit and other key indicators as a % of your total sales with other businesses in your industry. If your profit % is lower than average, then the ATo may decide to do a tax audit just to see if you're properly declaring all income you actually receive, or if the expenses you've claimed are actually allowable as tax deduction.
Also, not declaring cash income from your business could result in you getting a much smaller price for the sale of your business.
We have 2 keys roles as your tax accountants.
While we don't like paying tax - at the end of the day, it simply is a normal part of life and there's nothing we can do about it except obeying the laws and lodging a true and correct Tax Return.
If you don't declare all income you receive and if you claim as expenses things that aren't properly allowable tax deduction - then when you're audited and lose, you will have to pay back tax PLUS pay large penalties to the ATO.
Is THIS really WORTH it?
Talk to our expert accounting team about it. There are option we can advise you on to help you and reduce possible fines and penalties.
It's better for us to help you declare before the ATO finds out and start to attack you.
Please don't doubt our resolves to help you.
We're on your side.