Tips myth-ing the point

NT News - Real Estate - - Realestate Market Place - AN­THONY KEANE

TAX­PAY­ERS are mak­ing po­ten­tially costly mis­takes on their tax re­turns by claim­ing wrong de­duc­tions based on myths.

Tax time 2018 is al­most one month old and the Aus­tralian Tax­a­tion Of­fice is notic­ing many peo­ple putting their faith in in­cor­rect ad­vice given by work­mates, fam­ily and friends.

It says that the most com­mon myths in­clude be­liev­ing there is a $150 au­to­matic de­duc­tion al­low­able for work-re­lated cloth­ing and laun­dry, credit card state­ments can be used in­stead of re­ceipts as ev­i­dence, and you can claim makeup with sun­screen if peo­ple work out­side.

“Quite of­ten it’s wellinten­tioned fam­ily and friends. We hear of peo­ple be­ing down the pub and hear­ing what their mates and col­leagues claim,” said ATO as­sis­tant com­mis­sioner Kath An­der­son.

She said that in some work­places there was al­most a com­pe­ti­tion to get the high­est tax re­fund, with em­ploy­ees seek­ing agents known for big de­duc­tions.

“There are some peo­ple who need fur­ther ed­u­ca­tion, even in the agent pop­u­la­tion. Where we see a large claim that looks in­ac­cu­rate we take ac­tion on that straight away.” in­for­ma­tion and guides about de­duc­tions for spe­cific jobs.

“The key thing is: did you in­cur the ex­pense and was it in­curred in gain­ing as­sess­able in­come?” Dr Raftery said.

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