I know this has been discussed extensively and the following Infochoice news snippet is a little old but thought it would be good to post it anyway…
_______________________________________Low doc loans inform Tax office prosecutions
April 26, 2005
The Australian Taxation Office said it begun to prosecute some taxpayers over understating their income, even as they took out substantial home loans. The ATO’s taken a close look at borrowers using “low doc†loans where they don’t have to prove their income. In one case, a motor mechanic with a declared income of $35,000 was able to service annual loan repayments of $70,000 on a loan in an up-market Sydney suburb. The ATO is also using low doc lending records to target borrowers who are well behind on their business activity statements.
_______________________________________This demonstrates how ridiculous some people are being with the way they are using Low Doc loans. This is also tax evasion which could result in jail time in some cases.
Robert Bou-Hamdan
Mortgage Adviser
You must be logged in to reply to this topic. If you don't have an account, you can register here.
