Ten Common Tax Mistakes You Need to Avoid
In This Chapter
Identifying small business tax errors
Running a SMSF and pension fund by the tax book
Understanding real estate investment tax mistakes
T he Tax Office has published a number of common tax mistakes that you need to be aware of. In Chapter 4 I point out that the onus is on you to declare the correct amount of income you derive each year, and the correct amount of tax deductions (and tax offsets) you can legally claim. To keep you honest, the Tax Office performs ongoing tax audits and data-matching checks to verify whether the information you disclose in your tax return is true and correct.
If you breach Australia’s tax laws, you incur a financial penalty (a fine) plus an interest charge on the shortfall. If the offence is serious, you could spend some time in the slammer! In this chapter I identify some common tax mistakes that you need to avoid.
Not Adhering to Small Business Tax Requirements
Each year, the Tax Office conducts routine tax audits and data-matching programs that reveal the following common tax errors relating to running a small business: