The annual tax return period is approaching, and the Australian Inland Revenue Authority (ATO) warns that the most common mistake taxpayers make in filing their taxes is that they think they have automatic or standard tax credits.
This year, the Inland Revenue Bureau will randomly check the tax returns of more than 1 million taxpayers.
The Sydney Morning Frontier reported that before the end of the fiscal year, Assistant Director Anderson (Kath Anderson) said in an interview with Fairfax Media company (Fairfax Media) that the Inland Revenue Service was trying to prevent taxpayers from filing their taxes.
Anderson said the Inland Revenue Department will conduct random audits and continue to compare data from third-party sources. Overall, she said, the IRD is expected to contact more than 1 million taxpayers this year.
Each year, about 10 million individuals file tax returns, and the IRD scrutinizes the tax returns by comparing more than 650 million data.
According to the IRD's annual report, tax deductions related to work expenses accounted for about 76 percent (about A $23 billion) of total personal tax deductions in the last fiscal year, with some reporting excessive rental and work expenses. In response, the tax bureau launched seven hundred and sixty two thousand compliance checks, increased tax revenue of 893.8 million yuan.
In most cases, Anderson says, people need to keep receipts or purchase vouchers.
Although in order to alleviate the burden of record-keeping by taxpayers, the tax law allows people to declare deductions of up to $300 for work expenses without a receipt, there is still a need to provide proof of tax deductions relating to work expenses. And the share is reasonable.
"people think they have the right to (withhold taxes), even if they don't spend the money. But it has to do with your income, you have to spend the money, and you have to tell us how you calculated your declaration. "
She also urged her tax payers to use the "my tax deduction" (myDeductions) app to keep records and wait until mid-August to submit tax returns to minimize the chance of errors in pre-filling.
Error-prone tax deductions are as follows:
Car cost
In the previous fiscal year, 3.75 million taxpayers reported 8.8 billion yuan in deductions for work-related car fees. The biggest mistake was that up to 5000 kilometers of tax deductions for cars recorded in writing did not mean that people could file full deductions. If they didn't drive so many kilometers because of their work.
"about eight hundred and seventy thousand people filed tax deductions for 5000 kilometers last year, and some think they can do so just because they may have gone to the post office on their way to and from work," he said.
Mobile phone and Internet
In the previous fiscal year, 6.7 million people reported a record 7.9 billion yuan in tax deductions on other work-related expenses, with job-related mobile phones and Internet spending accounting for a significant part of the total. Such reporting of work expenses may also include household office, dues, overtime meals, tools and equipment, etc.
"the biggest mistake is that people report all of their mobile phones and Internet bills, even though only a portion of these costs are related to work."
Uniform and laundry expenses
In the previous fiscal year, about 6 million people filed such tax rebates, totaling 1.8 billion yuan, claiming they needed uniforms, protective clothing or clothing for specific occupations.
"the biggest mistake is that people are reporting in plain clothes, such as black pants or white shirts."
Meals, accommodation, travel
Anderson said travel costs related to work expenses, such as accommodation, will be a major focus of this year's tax returns.
"taxpayers who go to meetings, but both public and private, should pay special attention."
Self-study education
The biggest problem, Anderson said, is that people say they are paying for courses to get them promoted and to change the working environment.
"this fee is not tax deductible because it is not directly linked to their current income-earning activities."
Holiday rent and rent relief
In the previous fiscal year, about 2 million people reported gross rental income of 42.1 billion yuan and total rental cost of 45.6 billion yuan.
A common problem, Anderson says, is that when real estate is not actually rented, people declare rent tax deductions. In another case, some people declare home loans interest tax deductions, but loans are used to buy personal property, such as cars and ships.
Encrypted electronic money such as bitcoin
Last year, the total value of digital currency transactions in Australia was $5.9 billion. Andersen said that while not everyone can profit from such currency transactions, encrypted currency is considered to be a real estate-like asset and may be subject to capital gains tax (CGT).
Therefore, people need to keep detailed records, the date of each transaction, the purpose of the transaction and the trading party.
A car-sharing service similar to Uber (Uber)
Since 2016, the Inland Revenue Bureau has contacted one hundred and forty thousand drivers of car-sharing companies such as Uber to remind them of the need to register for excise tax (GST).
There are about 75,000 active drivers on the ride-sharing platform, and about 75% of them are registered. She said unregistered drivers could be charged excise tax.
Business such as Airbnb short-term Rental Network for Residential dwellings
Anderson warned that even renting homes or rooms on sites like Airbnb would require filing of income, which could also involve capital gains tax.
It also applies to people who make money from casual jobs on platforms such as freelancers-every dollar of income needs to be declared.