Common TAX related mistakes

Common TAX related mistakes

Common mistakes to avoid

As part of the ATO’s working with industry campaign, they have identified some common mistakes made by businesses in our industry when completing their activity statements and income tax returns.

These mistakes include:
• not recording all sales through the cash register
• depositing income in personal accounts and failing to report it
• wages and business expenses not being recorded and paid for in cash
• using unreported cash sales to fund personal expenses
• regular reconciliations not being completed
• compulsory superannuation guarantee payments not made on behalf of employees.

They have also found that a number of businesses in our industry lodge their activity statements and income tax returns late.

What you can do

• Find out what deductions you can and can’t claim as part of running your business
• Organise a ‘no strings attached’ assistance visit to ensure your business is on track
• Keep up to date with the latest information and advice for small business via the small business newsroom
• Complete a voluntary disclosure or speak to your tax adviser to correct any mistakes you may have made

The ATO recognises mistakes can happen and will work with businesses that have genuinely tried to get it right. However, for those businesses that seek to gain an unfair advantage by avoiding their obligations the ATO will utilise the full force of the law to ensure a level playing field for honest businesses in our industry.

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