spacer
spacer
spacer
spacer



CPA LOGO
spacer
Latest News
Hot Issues
Accessing superannuation benefits.
Does your business have a company Power of Attorney?
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
GrantConnect
2 in 3 SMEs benefit from instant asset write-off, survey reveals
Updated guidance on R&D claims
Do you know how to recover debts?
Wheat Production by Country
Types of small business benchmarks
What is a Commercial Lease?
ATO warns advisers against suspect R&D tax claims
The year of workplace law upheaval
How to Resolve Invoice Payment Disputes
Raft of revenue tweaks in MYEFO to raise millions
The Countries that Export the Most Wine in the World
Record low invoice values ‘reveal inflation sting’
A 2023 Advent Calendar for our clients
Average refund plummets by $580, total payout down $5.4bn
FBT – Christmas Parties and Taxi Fare/Rideshare
Annual wage growth surges to 14-year high of 4%
Is My Organisation Exempt From the Spam Act?
Employee Christmas Parties and Gifts – Any FBT?
Most Expensive Wars In History
Australian Taxation Office (ATO) motor vehicle data matching program extended
Articles archive
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 2 of 2017
Articles
‘Bank-like heists’ make way for new wave of cyber crime
ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
SMSF trustees told to take action on contributions
Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Does your business import or export goods and services?
Federal Budget - 2017-18 - Budget documents
When does an asset cost less than $20,000? Depreciating assets: composite items
ATO finalises guidance for capped defined income streams
Warning on trap with trust deed updates
2011 Census - what was the make up of your area?
It’s no secret that Australians have some of the largest houses in the world.
Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
FBT Reminder – Odometer Reading
ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
ATO, mid-tiers warn on common expenses myths

BE CAREFUL - As the ATO continues to ramp up its focus on scrutinising work-related expense claims this year, two mid-tier firms are urging SMEs to educate themselves on common tax time myths that commonly catch out their clients.



       


 


This year the ATO is using real-time data to compare taxpayers with others in similar occupations and income brackets, to identify higher-than-expected claims according to ATO assistant commissioner Kath Anderson.


“It is important to know what you’re eligible to claim before lodging your tax return and to make sure you don’t claim more than you’re entitled to. Many taxpayers don’t have a good understanding of what deductions they can claim, and believe they can claim for items which they in fact can’t,” Ms Anderson said.


“The ATO scrutinises every return. We have the technology and experience to detect non-compliance and we are continuing to catch taxpayers who are deliberately doing the wrong thing.”


Moore Stephens business advisory partner Matthew Free told Accountants Daily that SMEs have a number of common misconceptions about work-related expense claims and that his advice to businesses is “if in doubt, then ask the question”.


Mr Free said that common misconceptions exist around training and home office expenses.


“Self-education and/or staff training can be claimed either by the business as training or by the employee as a self-education cost, but only where the employee incurs the expense. The study must have the necessary nexus to the income currently being earned by the employee,” he said.


“For home office expenses, you can only claim a set rate per hour of usage to cover outgoings such as electricity and heating. Do not claim a percentage of mortgage interest or rent based on the size of the home office.”


HLB Mann Judd partner Peter Bembrick also spoke to Accountants Daily about claims where businesses often stumble such as insurance and business trips.


“While income protection insurance is an important tax-deductible item, other insurance premiums for TPD, trauma and life cover are not deductible,” he said.


“When you travel interstate or overseas you are allowed to claim the reasonable allowance rates for food, accommodation and incidentals. This amount is often overlooked and without substantiation you can claim up to the ATO rates published.”


Mr Free and Mr Bembrick have both seen some strange claims over their time as accountants.


Some of the less conventional but allowed claims Mr Free is aware of include Xbox consoles, Foxtel, ping pong tables and pool tables by businesses to boost team morale and efficiency, swords by professional sword swallowers, and make-up to prepare dead bodies by funeral parlours.


 


 


LARA BULLOCK
21 Jun 2017
accountantsdaily.com.au




26th-June-2017
spacer
Privacy Policy | Disclaimer