Effective advice and quality tax planning helps with the claiming of all allowable deductions, minimisation of taxable income, and the maximisation of tax returns. This helps build wealth.
Tax law is complex. That’s why the team at Mosman Accountants discuss every client’s tax return with the client, ensure sure that they are not only well-advised, but also that gain a clear understanding of the end result.
In Australia, tax payer’s returns are largely “self-assessed” and many individuals feel their returns can be finalised and lodged without the need for professional advice.
However, the Australian Taxation Office (ATO) makes extensive use of data matching technology, allowing them to draw information from many government sources, financial institutions, employers, funds managers, stock brokers and so on. Data matching is used to reveal monies generated by dividends, rental income, property sales, capital gains, interest income, amongst other things.
Furthermore, the ATO are increasing Business Activity Statement reviews on a regular basis, on both existing and new businesses alike.
Consequently, to avoid making false declarations and inuring penalties, which can range from 25% up to 100% in some cases, tax payers must exercise greater care when preparing and lodging tax return.
This applies to individuals and all business entities.
