Tax Office warning

From: Dale Gatherum-Goss


Hi

You will no doubt have seen that the tax office have decided that they will target rental properties this year for audits.

So, I recommend that you take extra special care to keep receipts for all of your expenses, and, to justify your claims for anything that is even remotely likely to attract their attention.

Don't be frightened of an audit, but, expect one and prepare for it and you won't have a problem at all.

Good luck

Dale
 
Last edited by a moderator:
Reply: 1
From: Alan Hill


Dale,

Is it just me, or do we seem to hear this same 'warning' from the ATO every year?

Keep all your records, keep up-to-date and claim for everything you are entitled and no more........seems simple enough.



:)
 
Last edited by a moderator:
Reply: 1.1
From: Dale Gatherum-Goss


Hi Alan

Normally, I would agree with you, but, this is the first time in abt 3 years where the tax office have publicly flagged the areas that they plan to attack.

I have a suspicion that this is not an idle threat as they feel they need to make their presence felt after a couple of years of maintenance mode after the introduction of the GST.

My belief is we'll see more action this year.

Have fun

Dale
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1
From: Steve Piggott


Curse the ATO!! I will personally create them so much paper work that they will ask me to go away!!
An associate of mine has made an all out effort to saturate the ATO with a barrage of faxes and letters regarding his multiple entities with many properties. He was very concerned that when he was notified that he would be penalised for any oversight or mistake he then sought clarification on how he should construct his returns and various deductions with his multiple entities.
After 20 or so letters and faxes the ATO responded with a cordial letter stating that they would not penalise for genuine mistakes nor would they grant any further advice as it was too time consuming and costly.
After 3 more requests for relevant information the tax office replied with a letter insisting that no more letters or faxes be sent and that he consult with his tax advisor.
Another fax was sent to convey the individuals right to information concerning the australian tax act relevant to his business and structures. He demanded that he be formally notified of his obligations per his taxation liabilities or he would cease to lodge returns as this could result in serious and costly mistakes. (like Radio Rentals )
The reponse from the ATO was "do whatever you want we dont want to know!"

I am pushing for this kind of response myself.

Happy Taxing Investing Neb :)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1
From: Dael Simpkins


Hi,

On the subject of the Tax Office, I was just on the Caveat Emptor forum and came across a software package which checks the interest charged on your monthly mortgage payment, (see ($100 says you've got errors in your mortgage"). The software has apparently been checked and validated by actuaries and accounting firms and it looks really good. I am considering buying it, but I am wondering if it would be a tax deduction. I am assuming that because it is used to check my interest payments (expenses) it should be deductible. Does anyone know for sure?

Thanks,

Dael
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Dale Gatherum-Goss


Hi

If you can argue that the cost relates to you earning an income, then yes you can claim the cost as a tax deduction. This should not be too hard to do at all.

Good luck

Dale
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1
From: Luke W


Hi Dale,
In the Caveat Emptor you commented that you have your own version of this. What is that called, and do you know the price tag?
Thanks,
Luke
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1
From: Dale Gatherum-Goss


Hi Luke

I'm not exactly sure of the cost as I've had my copy for abt 3 or 4 years now. From memory it cost me about $150 to $250 for the full suite of software that will calculate the interest on Mortgages, personal Loans and credit cards.

The software is called:

The Interest Savers

and the phone number was 02) 9413 4986

Good luck and perhaps you could let us all know what you discover if you follow this through.

Dale
 
Last edited by a moderator:
Top