Has accountant overcharged me?

[coastymike]

Can I stay in a dodgy motel and pay $50 and still claim $189. Yep.

Don't agree Paul. Refer to the decision in McIntosh v FCT 2001. Courts held that a deduction can only be claimed for expenses actually incurred.

The ATO reasonable amounts allow deductions UP TO the reasonable amount without substantiation. But if you have stayed in a dodgy hotel and paid $50 then you haven't incurred expenses up to a higher amount.

That was actually covered in the NTAA 2012 Individual Audit Hot Spots seminar. Do you disagree with the NTAA opinion. I think they are correct based on McIntosh's case.

The Commissioners 'per diem' amounts are for substantiation documentation purposes NOT for deductibility purposes under S 8.1. Even TD 2013/16 says "This Determination sets out the amounts that the Commissioner considers are reasonable ( reasonable amounts ) for the substantiation exception in Subdivision 900-B of the Income Tax Assessment Act 1997 (ITAA 1997) for the 2013-14 income year" and in the same document "the expenses claimed cannot exceed the amount actually incurred"

 

[Alex1]

I sorted by going to see him (after giving 2 days notice). He tried to fob me off saying he was really busy with and a client was about to arrive, perfect said I, let's sort this now otherwise I'll stay here until we do. Out came the diary and the mistake was picked up in about 30 seconds. A mumbled apology and he wrote me out a check. I think it was a mistake instead of trying to overcharge, but his response was definitely not what I expected, especially after several good years together.

My wife who was there thinks he may be suffering from early dementia. He is in his 70s so possible.

I once got my hair cut from this old Greek gent in rural Victoria as I was passing through. He cut for about 2 minutes then indicated he had finished. I said it looked good but would look better if he cut the other side to match. So he did, then stopped again. I asked if he would cut the top for me as well. He did. I then left and cut the rest myself. Turns out the guy had been a barber for about 40 years but had dementia and just sat in his shop most of the day, people would call in (small town everyone knew him) but no one had had their hair cut there for years... Anyone with a relative or friend with dementia will know it can be hard to realise when it started.


All good in the end.
Alex

 

[sanj]

That is ridiculous. My last return was very similar to yours - and my accountant did an amazing job, provided great advice and charged me a whole $145. He'll charge my partner the same.

Picks up calls on weekends/whenever i need him and i can't imagine him ever telling me to get stuffed, even if i question him on something.

Cheers,
Redom

To be honest if my accountant only charged me $145 and that included taking calls on weekends etc I'd dump him because I need an accountant who is smarter and richer than I am

 

[perthguy]

I sorted by going to see him (after giving 2 days notice). He tried to fob me off saying he was really busy with and a client was about to arrive, perfect said I, let's sort this now otherwise I'll stay here until we do. Out came the diary and the mistake was picked up in about 30 seconds. A mumbled apology and he wrote me out a check. I think it was a mistake instead of trying to overcharge, but his response was definitely not what I expected, especially after several good years together.

Thanks for letting us know. That's a good result and it's good you could get it sorted out with a meeting.

 

[MKP]

I decided to do e-tax for the last 7 years because the accountant wanted to charge me $200 per property for each of us (me and hubby) + extra for share. If you have a good record keeping - e tax is simple to use for simple affiar like mine (no SMSF or trust just shares, IPs and normal ordinary income tax).
I think I claimed most of possible legal deductions and I consulted ATO when in doubt; have tax depreciation schedule by BMT for IPs that are depreciable. All shares ins and out are automatic through paid subscription. People told me that I may not have claimed all my entitlement; but I am happy with my return and I am in control of my own finance.

So he has overcharged me. He had added a 0.5 as a 5.0 which brought my return from 5.0 hours to 9.5

Not a great look for an accountant!

Thanks for all the helpful advice.

Alex