Did you previously got audited by the ATO and want to avoid it this time at any cost? Even a minor error made during tax lodgement can lead to a detailed audit. Most possibly, individuals with noticeable fluctuations in income or dealing with cash are more likely to grab the attention of the Australian Taxation Office.
By staying on top of your paperwork and making sure you have access to all receipts and financial reports, an audit by the ATO can be avoided. Here are some smart tips that can work for you:
- Lodge Your Tax Return On Time
Stay updated with the announcements made by the taxation office so that you can have plenty of time to plan carefully for the returns. Individuals who lodge their taxes on time are less likely to make mistakes.
- Review & Cross Check The Deductions
Before filing your tax, make sure you review the calculations. If you sense the values are way less or more than they should be, consider doing a cross check of deductions. Working with a registered tax accountant can help in avoiding the errors that may attract the attention of the ATO.
- Declare The Deductions You’re Entitled To
In Australia, there are a number of deductions that are applicable for a claim. Depending on your occupation and remuneration, you can file for any number of eligible deductions. Make sure you declare the legitimate deductions and must have the receipts that back your claim to get the maximum refund possible without getting audited.
- Keep Record Of All Transactions & Receipts
Make sure you have the receipts of every transaction you have made so that you can show them up whenever asked by the ATO. This record can also be in digital form and is accepted as long as the date, vendor, cost, and details are all clearly visible.
- Be Careful When Recording Cash Transactions
Cash payments are fine when they are carefully recorded. ATO is more focused on cash based businesses. If you are operating one, may make you keep records of all transactions and declare your income carefully. A tax consultant can handle the income tax return process efficiently on your behalf.
Nobody wants to be audited by the ATO and explained above are some of the easy yet smart steps that can heavily reduce your chances of getting audited. KPG Taxation is a trusted accounting and taxation company proudly filing the tax returns on behalf of businesses and individuals, thereby preventing the tax audit scenario.