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:
- 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!