Eliminate Your Fears And Doubts About Tax Preparation

March 11th, 2021 by igniite

Eliminate Your Fears And Doubts About Tax Preparation

In certain ways the Tax Office / Big Brother is making it easier and easier to include everything in your tax return these days. The ATO has very extensive data matching tools at it’s disposal and can tell, amongst other things:

How much interest you received from the bank
Which companies paid you a dividend and whether it was franked
If you received a distribution from a partnership or trust
Whether you hold Private Health Insurance
Whether you disposed of shares or property during the year
If you purchased an expensive car, boat, aeroplane, etc
If you travelled overseas and when / where you travelled
Whether you contributed to a super fund during the year and the level of your contributions
Salary and subcontractor Payment details
If you have dependants and/or a spouse

If you fail to disclose certain information in your tax return they normally allow you time to rectify the situation before sending you a “please explain” letter and commencing a potential audit. However it is far better to take the time to review your situation and include everything that may be relevant to a tax year before lodging your return.

Voluntary disclosure is always the preferred method and you are less likely to find yourself in trouble with the ATO if you follow this mantra.

If you have lodged a tax return and become aware of additional information after it has been assessed you are always able to prepare an amended return to include the additional information. It is best you do this before the ATO finds the problem as they will take a far more lenient approach in regard to fines, penalties & interest.

If you need any assistance in preparing your tax return we suggest you seek independent professional advice from a registered tax agent.