INCOME TAX DEDUCTIONS – AUSTRALIA

Dodgy claims are declining, says Tax Office

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Original article by Tom McIlroy
The Australian Financial Review – Page: 8 : 23-Sep-19

Increases to the low- and middle-income tax offset and the federal government’s $158 million income tax cuts package have prompted a jump in the early lodgement of tax returns. However, despite the rush by taxpayers to get their tax refunds as soon as possible, the Australian Taxation Office has noticed a fall in the number of incorrect claims for tax deductions. The ATO issued over 5.4 million tax refunds in the first nine weeks of the 2019-20 financial year, worth a total of $14.5 billion.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Tax Office to ramp up audits of landlords

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Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 18-Apr-19

The Australian Taxation Office has signalled that it will audit about 4,500 taxpayers who claim deductions for rental properties in 2018-19. The ATO undertook 1,500 such audits in 2017-18, after random sampling of tax returns showed that 90 per cent of claims for rental deductions contained errors. Assistant commissioner Gavin Siebert says the ATO uses data analytics and information from a range of third-party sources in its audits. It imposed penalties totalling $1.3m for incorrect rental deductions in 2017-18.

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AUSTRALIAN TAXATION OFFICE

Tax Office reveals its top targets for audits

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 4-Jun-18

Home offices, cryptocurrencies and property investments will be among the Australian Taxation Office’s main areas of scrutiny when it comes to assessing 2017-18 tax returns. ATO assistant commissioner Kath Anderson notes that the amount of data that it collects each year continues to grow, making it easier to compare taxpayers to others with similar incomes and occupations to see whether appropriate deductions are being claimed.

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AUSTRALIAN TAXATION OFFICE, AIRBNB AUSTRALIA PTY LTD

ATO cracks down on other work-related deductions

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Original article by Frank Chung
News.com.au – Page: Online : 22-Feb-18

The Australian Taxation Office has signalled its intention to target tax deductions for dubious work-related expenses in 2018. ATO assistant commissioner Kath Anderson says workers claimed a record $A7.9bn worth of deductions for "other" work-related expenses in 2017. She says many people attempt to claim a tax deduction for private expenses and pass it off as a work expense. She stresses the importance of keeping records of legitimate work-related expenses.

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AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

Work expense claims crackdown looms as ATO eyes rorts

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 19-Jun-17

Richard Highfield, who provides guidance to the Australian Taxation Office on "revenue leakage" issues, suggests that tax deduction rorting could be costing the Federal Government up to $A1.2 billion per annum. He says that deductions on car expenses is the biggest cause of concern for the ATO and Treasury, while ATO commissioner Chris Jordan noted in April 2017 that excessive claims for work expenses is a bigger loss of revenue than tax evasion by multinationals. Taxpayers claimed $A21.8 billion in work-related deductions in 2014-15.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, LIBERAL PARTY OF AUSTRALIA

PM scrambles for a tax policy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Feb-16

Treasurer Scott Morrison says tax reform will be included in the May 2016 Budget, although the Australian Government has backed down on its proposal to increase the GST. It will instead look at options such changes to superannuation tax concessions and reducing income tax rates via the abolition of tax deductions for work-related expenses. However, Morrison has ruled out making any changes to the negative gearing regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE

Company tax cut – at a price

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Original article by Ben Potter
The Australian Financial Review – Page: S1 & S2 : 23-Sep-15

Shadow treasurer Chris Bowen says the Federal Opposition is open to reducing the corporate tax rate to 25 per cent. However, he has told the AFR Tax Reform Summit that this should not be funded via an increase in the GST. ACTU president Ged Kearney told the summit that any reduction in the corporate tax rate should not result in lower tax revenue, but stressed that this does not necessarily mean that the GST should be increased. Economist Saul Eslake proposed cutting some income tax breaks to finance a reduction in the corporate tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, ACTU, FAIRFAX MEDIA LIMITED – ASX FXJ, KPMG AUSTRALIA PTY LTD, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. COMMONWEALTH GRANTS COMMISSION, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Spouses and doctors lose tax break

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Jun-15

The Australian Government has secured the Opposition’s support to scrap the Dependent Spouse Tax Offset, a 2014 Budget measure that were blocked by the Senate. Abolishing the offset is expected to generate cost savings of around $A300m over four years. The Opposition is also expected to support the Government’s proposed changes to the fringe benefits tax concessions regime for meals and entertainment expenses.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY, ABC RADIO, AUSTRALIAN GREENS, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE