Thread: tax tips

Now,now Sturdee!!

The ATO will answer any question put to them in regards to your tax .....they are not in the business of giving advise ......but they will answer your questions in full and provide an accurate account of how to go about filling in the correct forms, with the correct details required to ensure you get your entitled refund ...all you have to do is ....ring and make an appointment ...or ......talk to them over the phone and have any paperwork/forms sent out to you .......points to remember before ringing ...have your tax file number handy, and a list of questions your going to ask ....pen and paper ready to write down the answers .....simple as that .....and if I am not mistaken, you can go to the website ... www.ato.gov.com.au and send them an email with your query/s ...

The ATO is not going to "do your taxes" for you, but they will help YOU do them properly...its all part of the service, our taxes pay for it, so you might as well use it.....

When I first went into business 30 years ago the best advice given to me was
"Declare all that you earn, but claim everything that you are entitled to and you won't have a problem". The ATO expects just that.

Originally Posted by Barry_White

I thought that when he gets you to sign the tax papers he is absolving himself because he is only doing what you have instructed him to do and he is just submitting every thing on your behalf.

Actually it isn't.

Amongst the ATO arsenal of weapons to combat tax evasion is a small piece of separate legislation, introduced (and to my knowledge not yet repealed) to combat the original bottom of the harbour schemes.

This legislation makes the professional advisors, be it accountants or lawyers, liable for any tax evaded on their advice if the taxpayer is unable to pay their debt to the ATO.

It critically affected the profitability of the accountancy practice I was working for at the time. Cost me my expected and regular bonus.


Peter.

There is many other things like meals, dog, parking, etc but a good accountant will do all that for you.

Dog? Really?

Yes Afro boy!! Really - guard dogs, farm dogs for stock work.

Originally Posted by Sturdee

Actually it isn't.

Amongst the ATO arsenal of weapons to combat tax evasion is a small piece of separate legislation, introduced (and to my knowledge not yet repealed) to combat the original bottom of the harbour schemes.

This legislation makes the professional advisors, be it accountants or lawyers, liable for any tax evaded on their advice if the taxpayer is unable to pay their debt to the ATO.

It critically affected the profitability of the accountancy practice I was working for at the time. Cost me my expected and regular bonus.


Peter.

It certainly was the case in the past where the client usually got the fine even if the Accountant had provided incorrect advice. Recent changes mean the Accountant may also be liable for fines or penalties especially if they have submitted claims that are false. Sturdee is right although the old legislation was limited in reach, the new changes are more general and aimed at those that submit claims without substance.

There are no rules on estimating claims for boots, gumboots etc, if the total work related claims are over $300 you need receipts.

As for guard dogs, the mut that sits on the ute and shares your lunch and plays with the kids at night is a pet and not a guard dog. Farm dogs are fine as are dogs that really do operate as guard dogs, and that means locked in yards, mean hungry mutts that would rather take your leg off than get an ear scratched. Mind you there are shades of grey, and the facts of each situation deterimine the validity of the claim.

Originally Posted by johnc

.....................As for guard dogs, the mut that sits on the ute and shares your lunch and plays with the kids at night is a pet and not a guard dog..........................

My dog sat on the back of the ute and shared my lunch but he was most definitely a guard dog. He bit a number of people that were foolish enough to come too close to the back of the ute. I wouldn't have minded being audited when I had him, just so I could prove that he was indeed a guard dog that guarded my tools and my ute. I had visions of the tax inspector going home with shredded clothes. I had to muzzle him when he went to the vets as he managed to bite a hole in the front of his jacket when a rectal thermometer was inserted!

Mick

Originally Posted by journeyman Mick

My dog sat on the back of the ute and shared my lunch but he was most definitely a guard dog. He bit a number of people that were foolish enough to come too close to the back of the ute. I wouldn't have minded being audited when I had him, just so I could prove that he was indeed a guard dog that guarded my tools and my ute. I had visions of the tax inspector going home with shredded clothes. I had to muzzle him when he went to the vets as he managed to bite a hole in the front of his jacket when a rectal thermometer was inserted!

Mick

In that case Mick you fitted the shades of grey requirement, it all comes down to being able to provide a reasonable basis for a claim against assessable income, there must be income, the claim must be relevent to earning that income, and the claim must not be specifically excluded. A speeding fine hurrying between jobs would not be a claim for example.

I once applied for a personal judgement on claiming a dog. I was driving a stock truck for a two days a week and was told that i could only claim 2/7ths of the dog expences.

After a short phone call from me the final verdict was i could claim the full costs for the dog because of the training and reliance on me to look after it. I argued that the boots, rubber boots & overalls were also only used 2 days a week but could claim the full amount.

They are dumb ba@#$%^&$s but usually if you can argue your point well you get on alright.

When doing tax returns one thing that i found out for truck drivers is to ensure your employer pays you a reasonable meal allowance.

If they dont at the end of the year you count the days up in your logbook you stayed away from home and get about $20 per day on your group certificate as a meal or away from home allowance.

It will not cost your employer as they just transfer this amount from your gross income into allowances

The ruling on the ATO website gives a per day meal allowance for this and you can claim about $70 per day with no receipts. you only need to be able to show you were away from home (interstate only)

Good one for the truckies.

Originally Posted by johnc

In that case Mick you fitted the shades of grey requirement, it all comes down to being able to provide a reasonable basis for a claim against assessable income, there must be income, the claim must be relevent to earning that income, and the claim must not be specifically excluded. A speeding fine hurrying between jobs would not be a claim for example.

The ute was used 100% for income production and carried my tools of trade and materials. The dog specifically guarded the ute, he wouldn't go people at home or on the jobsite only if they got close to the ute. I can't see that it would be any different than an insurance policy covering the ute, tools and materials against theft. He was my insurance policy and proactive car alarm. I still wish I could've demonstrated his ute-specific guard dog abilities.

Mick