Do you want the absolute maximum benefits from your tax return but afraid of an audit? You have landed at the right place because we are here to tell you how to get tax deductions right without having any risk of being audited. While preparing a tax lodgement, you need to make sure that you are not making any mistakes and providing correct information. This should be done beforehand as leaving it to the last minute can give you a headache.
Scroll down to some tips which you can follow if you want to minimise your tax burdens:
1. Know Your Lodgement Dates:
As such, there is no fixed date for everyone. The dates may vary depending upon the fact that you own a company, business or you are an individual paying tax return.
- For individuals who file their tax return on their own, lodgement date is generally due on the 31st of October, and if they lodge through a registered tax agent, then the dates may extend.
- For businesses, lodgement dates vary according to their size and lodgement history. Small businesses will have the dates until 15 May 2020. And if you are the owner of a company, trust or any partnership firm, then you may have multiple lodgements with multiple due dates. After knowing the correct dates, make sure you provide the correct property report.
2. Don’t Ignore Cash Transactions:
This happens mostly with small-scale business owners who forget to record the transactions made in cash. The small transactions that you make using cash, can have a significant effect on tax deductions. To avoid such problems, use a dedicated business account for all the purchases, and make sure you stick to it. The ATO can keep track of even your personal account now, to know if you are under-declaring income.
3. Don’t Forget Record keeping:
If you are using your business card to pay for a movie or a coffee, ATO views it as a business-related expense. The main solution is to maintain records or receipts of all your purchases so that in the end you can divide them into purchases made for self-use and purchases made for business.
You can also expect a tax refund if you have overpaid the taxes.
4. Claim Right:
There are areas in which businesses claim in which they shouldn’t. Ensure you never seek tax-related advice from your friends or relatives – they may be wrong and this may result in the ATO rejecting your claim.
So these were some of the ways by which you can estimate your tax return. However, there is a difference between tax planning and tax evasion and tax avoidance. Ensure that you do not end up committing tax evasion or avoidance as it is illegal and punishable in the eyes of the government.
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