Most read
Bitcoin price jumps, but how high can it go?...
Bitcoin price jumps, but how high can it go?...
Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Earn
How 6 ‘creative’ Aussies tried to fool the taxman
Aussies are being warned that mistakes and mishaps are not an excuse to not lodge a tax return, with this year’s deadline approaching fast.
How 6 ‘creative’ Aussies tried to fool the taxman
Aussies are being warned that mistakes and mishaps are not an excuse to not lodge a tax return, with this year’s deadline approaching fast.
Australians must lodge their tax return by Thursday, 31 October, or risk being like one of the 300,000 people who missed out on a refund last year.
And unfortunately, creativity is not an excuse for a late return, according to assistant commissioner Karen Foat.
“We often hear some pretty creative excuses around tax time, ranging from why someone has lost their records, missed the deadline, excluded income, or overclaimed on deductions.”
To avoid future shame, the taxman has kindly provided six of the “weirdest tax-time excuses” as well as some savvy advice to help you lodge on time.
Problem one – Someone stole my pants
One taxpayer tried to claim a thief broke into his car and stole his pants, the pockets of which were allegedly filled with receipts.
Solution – Luckily, records can be kept in digital form, meaning physical receipts and burglary can be avoided, the ATO said.
Problem two – I’ve got holiday brain
Another tax dodger tried to claim his late lodgement was due to having “holiday brain” after returning from an overseas trip.
Solution – The ATO argued that tax time is actually the most exciting time of the year. While nestegg does query such a claim, we do know the value of putting a tax refund towards the next holiday plan.
Problem three – What’s a tax return? Never heard of it!
The ATO says it has even been told by taxpayers that they’ve never even heard of a tax return.
Solution – Anyone who has a taxable income above $18,200 will need to lodge a tax return. If you’re not sure what a tax return is, nestegg has helpful tools to find out on our website.
Problem four – A mouse ate my receipts
According to the Tax Office, the most common excuse it receives for missing the tax deadline is mouse related. One savvy taxpayer even tried to explain that a mouse had broken into their car and eaten their receipts.
Solution – Keep your car doors locked and windows up. However, if a mouse still finds its way in to your safe receipt storage places and you don’t have a digital copy, check with the seller to see if they have a record of the transaction. Just get your return in!
Problem five – The car wash did it
Leaving receipts in the car made three appearances on this list, with one taxpayer blaming the car wash for ruining all traces of a work-related purchase, and therefore, their ability to lodge their tax on time.
Solution – Windows up!
Problem six – I’ve got too many to do!
The Tax Office said it often hears that taxpayers have put off their latest return because they have several others still overdue.
Solution – While we are all busy, services such as “myTax” allow Aussies to lodge their tax returns from 2016 onwards, with a lot of the information pre-filled.
nestegg will give the above dodgers an A for effort and a D for execution, and would like to remind taxpayers of the penalties for late payment:
Penalties for late tax returns
A late tax return can be costly for Australians who have not taken note of the 31 October deadline, with “failure to lodge on time penalties” an expensive addition to the tax process.
Each penalty unit costs $210, with each unit applicable for each 28-day period that the return is overdue, up to a maximum of five penalty units, which makes for a very expensive excuse in the above scenarios!
In reminding taxpayers about the importance of lodging on time, Ms Foat outlined that a tax return “can be done from the comfort of your own living room, just by going online and logging into myTax (accessed via myGov)”.
“For the majority of taxpayers, this takes less than half an hour.”
“Some taxpayers have even told us that they’ve completed it whilst on the bus, it’s that easy,” the assistant commissioner said.
nestegg has looked at what you can and can’t claim this tax time.
About the author
About the author
Tax refund
Trio charged $9.4m over emissions trading tax scheme
A trio has been ordered to pay over $9.4 million for their roles in an emissions trading tax scheme. ...Read more
Tax refund
Property investors miss out on key tax benefits
With the end of the financial year fast approaching, property investors are being urged to look into depreciation or risk losing thousands. ...Read more
Tax refund
ATO reminds contractors to declare $172bn in income
The Australian Taxation Office is using new data amid concerns that over $172 billion in contractor tax income is not being declared properly. ...Read more
Tax refund
Here’s how to maximise your 2021 tax returns
Not all careers are equal in the eyes of the tax system, with workers in certain industries able to tap into a jackpot of tax perks if they stay on top of their expenses. ...Read more
Tax refund
Why it’s time for NSW to abolish stamp duty
A property interest group has argued for the end of stamp duty, urging the government to replace it with a more efficient and equitable tax system. ...Read more
Tax refund
Does Australia need an aged care tax?
The aged care royal commission has given the country a once in a generation opportunity to fix the aged care sector by increasing the tax rate, an industry expert has revealed. ...Read more
Tax refund
Expats cautioned over COVID-19 tax traps
With thousands of Australian expats either returning or planning on heading home following the COVID-19 pandemic, an accountant has urged them to look into their tax affairs to avoid a hefty tax bil...Read more
Tax refund
80¢ per hour work-from-home deduction method extended
Taxpayers continuing to work from home in the new year will be allowed to continue using the simplified working-from-home deduction method following a third extension by the ATO. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Tax refund
Trio charged $9.4m over emissions trading tax scheme
A trio has been ordered to pay over $9.4 million for their roles in an emissions trading tax scheme. ...Read more
Tax refund
Property investors miss out on key tax benefits
With the end of the financial year fast approaching, property investors are being urged to look into depreciation or risk losing thousands. ...Read more
Tax refund
ATO reminds contractors to declare $172bn in income
The Australian Taxation Office is using new data amid concerns that over $172 billion in contractor tax income is not being declared properly. ...Read more
Tax refund
Here’s how to maximise your 2021 tax returns
Not all careers are equal in the eyes of the tax system, with workers in certain industries able to tap into a jackpot of tax perks if they stay on top of their expenses. ...Read more
Tax refund
Why it’s time for NSW to abolish stamp duty
A property interest group has argued for the end of stamp duty, urging the government to replace it with a more efficient and equitable tax system. ...Read more
Tax refund
Does Australia need an aged care tax?
The aged care royal commission has given the country a once in a generation opportunity to fix the aged care sector by increasing the tax rate, an industry expert has revealed. ...Read more
Tax refund
Expats cautioned over COVID-19 tax traps
With thousands of Australian expats either returning or planning on heading home following the COVID-19 pandemic, an accountant has urged them to look into their tax affairs to avoid a hefty tax bil...Read more
Tax refund
80¢ per hour work-from-home deduction method extended
Taxpayers continuing to work from home in the new year will be allowed to continue using the simplified working-from-home deduction method following a third extension by the ATO. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
