January 14th, 2010
The Tax Office has recently indicated how it was chasing the cash economy and using benchmarks to catch tax evaders.
Here is a real life example the Tax Office have given:
Case Study
A Melbourne based concreter received a tax bill for $115,953 after an audit showed he had omitted $142,000 from his tax return.
The taxpayer cam to their attention because he had been reporting very low levels of income for a number of years. The concreting benchmark help the Tax Office to understand the taxpayer’s business relative to the rest of the industry.
During the audit, the tax payer said his business was based on smaller suburban work, for which he received very little cash. He said he always issued tax invoices to his customers.
The concreter had declared a taxable income of $18,000 for the year. He recorded only four concrete purchases during one of the quarters.
Third party data acquired from his supplier for the quarter showed eighteen concrete purchases, some of which were paid for in cash. Further examination showed:
- many of his jobs were for cash
- they were not recorded in his records; and
- his customers did not receive tax invoices.
The auditors formed the view that there was significant unreported cash income and expenses.
As the taxpayer’s record keeping was inadequate, the auditors calculated his income by applying his normal sale price per square metre to his actual purchases of concrete.
The audit resulted in tax liabilities of $67,000 and additional penalities of nearly $50,000.
January 13th, 2010
The Tax Office is warning people about another bogus email circulating that claims to offer a refund from the Tax Office.
The email claims to be from the ATO, and shows a Tax Office email address as the sender.
The email uses the Tax Office logo and iincludes the words “You are eligible to receive a tax refund of $250.50″ in the subject heading and the following text (althought there are many variations):
Dear Australian Taxation Office customer,
After the last annual calculation of your fiscal activity we have determined that you are eligible to receive a tax refund of $250.50 AUD.
Please submit the tax refund and allow 3 -5 business days in order to process it.
The email asks people to complete a refund form by clicking on a link in the email which directs them to a bogus Tax Office Website and asks for personal information and credit card details.
The ATO advises that anyone who has already entered their credit card information into the bogus site should immediately report it to their credit card provider,
August 5th, 2009
Thiel Partners Accountants is primarily a tax practice that provides personal and professional tax services tailored to your needs.
We specialise in all levels of accounting including taxation, forensic accounting, corporate advice, audit and migration.
We have an experienced specialist team of investment accountants who advise property investment clients.
Our philosophy ensures the importance of client service and that all clients receive the best advice and options when it comes to their financial affairs. We are committed to customer service and work closely with our clients throughout the financial year.
Our systems and processes have enabled us to service the needs of clients on a national basis and in some instances overseas.
We provide advice regarding structure of ownership of investment properties to ensure the maximum tax benefits are achieved.
Through the correct structure, and tax planning we are able to assist in maximising the cash flow for our clients to lighten the burden of their negative gearing commitment by enabling them to receive their tax benefits on a weekly or fortnightly basis.
An important part of our service and commitment to you is that we maintain our independence, and you can rely on us to provide you professional advice without bias.
