Earn
Overclaimers warned to ‘fess up’ before ATO knocks
The Australian Taxation Office (ATO) has warned it’s paying close attention to every tax return lodged and is on the hunt for incorrect claims this tax time.
Overclaimers warned to ‘fess up’ before ATO knocks
The Australian Taxation Office (ATO) has warned it’s paying close attention to every tax return lodged and is on the hunt for incorrect claims this tax time.
Despite the threat, assistant commissioner Karen Foat wants to assure taxpayers doing the right thing that they have nothing to fear from a potential audit.
But for those people who have done the wrong thing, the assistant commissioner’s advice is to fess up sooner rather than later, even if they have only overclaimed by a little bit.
With the ATO contacting around 2 million people about their returns each year, Ms Foat flagged that, “in most cases, audits are not our first action”.
She said, sometimes, concerns can be raised purely thanks to third-party data that indicates reported income and deductions that appear high compared to people with a similar job and income level.
“If we do decide to look a little closer through an audit, you can expect that we will contact you or your tax agent to make further inquiries,” Ms Foat said.
“The sort of information we may need from you or your agent will vary depending on the circumstances.
The assistant commissioner noted that, oftentimes, the ATO is “just looking for an explanation and documentation on a deduction”.
“For example, if you’ve claimed deductions for clothing but you work in a job where a compulsory uniform is unlikely, we may just want to know a little more about why you’ve claimed that deduction.”
Other times, Ms Foat said the ATO may need to undertake a more detailed review.
“Though, again, this generally involves us asking you or your agent for more information or evidence to support your claims,” she continued.
“We will always let you know what issues have attracted our attention and what information we will need from you.
“Our biggest tip is to ensure you work with us from the beginning and provide the information required to help us resolve any concerns and finalise the audit.”
The assistant commissioner flagged that anyone who thinks they’ve made a mistake or an error in filing their return, “the best thing you can do is to ‘fess up’ as soon as possible”.
“If we haven’t been in touch with you yet, you can amend your return yourself on myTax, or if you use an agent to ask them to lodge an amendment for you,” she explained.
If the ATO has been in contact, it’s important to be honest and get the matter resolved quickly, Ms Foat noted, with taxpayers “more likely to face penalties if they aren’t honest with us once we come knocking”.
“We understand it can be frustrating to dig up old receipts and information, but it is necessary,” she said.
“A small amount of overclaiming by a large number of people adds up to $8.7 billion less each year for essential services; we can’t turn a blind eye to that.”
About the author
About the author
Tax refund
Victoria unveils new payroll tax break
Victorian businesses that re-employ or hire new workers over the next two years are set to receive a new payroll tax credit, as the state government unveils a range of tax measures aimed at stimulatin...Read more
Tax refund
Is it time for a national EV tax?
The Australian Automobile Association has called for a national EV tax as state regulators continue to introduce taxes to offset fuel losses. ...Read more
Tax refund
Major bank exec convicted over fraudulent tax claims
A major bank executive has been convicted and fined after attempting to obtain tax refunds close to $25,000 in work-related expenses. ...Read more
Tax refund
Can Millennials maintain their lifestyle as the Boomers retire?
With considerably more people exiting the workforce at age 65 than entering at age 15, younger Australians could be forced to foot the bill for retirees, an analyst has said. ...Read more
Tax refund
Could NSW follow SA with an EV tax?
The NSW government will consider the introduction of an electric vehicle tax, just days after South Australia tried to pass a similar tax measure, the state treasurer has confirmed. ...Read more
Tax refund
ATO data reveals tax avoidance red flags
One particular Caribbean island has one and a half times more Australian bank accounts held by tax residents than there are actual residents on the island, according to new ATO data that shines a ligh...Read more
Tax refund
How ‘The Block 2020’ refutes a common tax myth
An industry professional has found more than $14 million in total estimated depreciation on The Block 2020, disproving the myth that only new properties can claim depreciation. ...Read more
Tax refund
Australian mums taxed out of full-time work
Working mothers are facing disincentives to work more days due to a tax system that works against them, research has found. ...Read more
Tax refund
Victoria unveils new payroll tax break
Victorian businesses that re-employ or hire new workers over the next two years are set to receive a new payroll tax credit, as the state government unveils a range of tax measures aimed at stimulatin...Read more
Tax refund
Is it time for a national EV tax?
The Australian Automobile Association has called for a national EV tax as state regulators continue to introduce taxes to offset fuel losses. ...Read more
Tax refund
Major bank exec convicted over fraudulent tax claims
A major bank executive has been convicted and fined after attempting to obtain tax refunds close to $25,000 in work-related expenses. ...Read more
Tax refund
Can Millennials maintain their lifestyle as the Boomers retire?
With considerably more people exiting the workforce at age 65 than entering at age 15, younger Australians could be forced to foot the bill for retirees, an analyst has said. ...Read more
Tax refund
Could NSW follow SA with an EV tax?
The NSW government will consider the introduction of an electric vehicle tax, just days after South Australia tried to pass a similar tax measure, the state treasurer has confirmed. ...Read more
Tax refund
ATO data reveals tax avoidance red flags
One particular Caribbean island has one and a half times more Australian bank accounts held by tax residents than there are actual residents on the island, according to new ATO data that shines a ligh...Read more
Tax refund
How ‘The Block 2020’ refutes a common tax myth
An industry professional has found more than $14 million in total estimated depreciation on The Block 2020, disproving the myth that only new properties can claim depreciation. ...Read more
Tax refund
Australian mums taxed out of full-time work
Working mothers are facing disincentives to work more days due to a tax system that works against them, research has found. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
