ATO Hit List
The ATO 2018 hit list focuses on small businesses and individuals.
Undeclared income, wrongly-claimed expenses and unpaid superannuation are key features of the 2018 hit list.
The ATO has further detailed what type of work-related expenses will be in focus this tax time and signalled a particular focus on documentation where “Red Flags” are automatically triggered in its system. Substantiation will be bumped up the ATO’s priority list when it assesses suspect claims.
It will be important the individuals and small businesses have a record of expenses and can demonstrate how claims have been calculated.
“Other” work-related expenses will be an area of focus for record-keeping. Expenses of this nature can include home office, union fees, mobile phones and internet, overtime meals and tools and equipment.
The ATO is also warning against claiming private expenses where they are bundled with work expenses eg, incorrectly claiming entire phone and internet bundle or claiming an overseas study trip even though part of the trip was a holiday.
Trust Minutes & Resolutions
To comply with ATO rulings, the trustee of a trust must resolve to distribute trust income no later than 30 June. Clients who have Trusts set up will be receiving or have already received a Trustee Resolution to sign and return to us in regards to trust distributions for the year ended 30 June 2018.
ATO sets its sights on clients investing in crypto currencies (e.g., bitcoin)
The ATO has released a suite of guidance regarding the tax treatment of cryptocurrencies, with a specific focus on bitcoin. Despite this guidance, the ability to determine the tax treatment of a transaction denominated in bitcoin (e.g., the income tax, CGT, GST and FBT treatment) continues to confuse taxpayers. This is partly because bitcoin is still relatively and also because the nature of bitcoin itself, and the way in which it is used, is extremely complex. If you have invested in bitcoin and would like help in understanding the tax implications please contact us.
As at 1 July 2018 if you would like us to liaise with the ATO to arrange payment plans for outstanding income tax debts or integrated account debts, you will incur a fee of $110 (inclusive gst) per plan arranged.