Review the ATO’s tax-time target list

Tax time is fast approaching and the ATO is issuing warnings left, right and centre.

The latest from Tax Commissioner Michael D’Ascenzo involves deductions claimed for the pre-payment of directors’ fees that never actually get paid.

But if you don’t have a board with paid directors, there are plenty of things you should look out for. The ATO puts out its hit list for the tax year every July – here is a reminder from last year of the key points:

• Trusts.
• Division 7A, which covers shareholder loans.
• The cash economy.
• Business Activity Statement fraud.
• Employer obligations such as tax and superannuation.
• Claiming losses.
• Fringe benefits tax.
• Capital asset sales.

If you have any issues in any of these areas, put in a quick call to your accountant and have a chat about any issues you might need to do further work on.

And don’t be afraid to ring the ATO if you really need help – they are always much happier to hear about problems than find them.

Get it done – today!