It is key to have qualified tax accountants prepare your tax returns as based on our experience getting simple things wrong can lead to an unnecessary audit by the Australian Tax Office (‘ATO’).
Search our directory of accountants for an accountant that can assist with the preparation of the following tax returns:
- Individual Tax Returns
- Company Tax Returns
- Trust Tax Returns (Family, Discretionary and Unit Trust)
- Partnership Tax Returns
- Superannuation Fund Tax Returns
It is our experience getting it right the first time ensures the most tax efficient outcome, but also ensures you are not wasting time dealing with the ATO due to incorrect fields being completed. Understanding the Tax Law is one aspect of ensuring the correct outcome, however, preparing a correctly filed return is another important aspect as it is easy to get it wrong which can then trigger an unnecessary tax audit.
Common errors can include:
a) Wrong Industry / or Occupation Code
Often overlooked but critical to ensure you get it correct. The ATO prepare bench marking studies based on your occupation and industry. If you are outside of the norm, you can expect the ATO to take a closer look.
b) Excessive Deductions
Where you disclose tax deductions is key. Often the “Other Deduction” category is chosen as a short cut to enable the tax return to be prepared. This category should be chosen as a last resort once all other deduction boxes have been exhausted.
c) Personal Services Income
If you run a PSI business via a company and answer Yes to this question it is important you pass one of a number of test to enable the return to be completed correctly. The ATO are reviewing PSI arrangements.
d) Loans to Associates
If you are a shareholder or associate of a shareholder an borrow money you are required to indicate this on the company tax return. If you complete this field you need to ensure you have all appropriate documentation prior to the lodgement date or year end to ensure there is no deemed dividend under Division 7A.
d) Motor Vehicle Expenses
If you complete a company tax return and have motor vehicle expenses, the ATO will automatically expect you will either have something completed in the “Employee Contribution” field or have filed a FBT return. Unless the car is an exempt car the ATO may scrutinize your return to ensure compliance.
Above are just a handful of areas that can cause an issue if the tax return is not completed correctly. An experienced tax accountant preparing your tax return is critical to ensure your tax returns is completed correctly.