Someone told me that if you have never been audited the ATO gives you one chance, then if you get audited again you have to show all receipts etc.
Is this true at all?
one chance at what? Like a get out of gaol free card? I don't think so.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
No way! A good compliance history may help you plead your case but it will not stop them going through you like a dose of the salts.
The consequences of having poor records can be catastrophic. Maintaining your records is a dull but essential job.
Ashley C wrote:No way! A good compliance history may help you plead your case but it will not stop them going through you like a dose of the salts.
The consequences of having poor records can be catastrophic. Maintaining your records is a dull but essential job.
I totally agree. Why take the risk of not having accurate records? For those that use a property manager – it's not overly difficult to keep records. For those that self manage – an hour every month updating a spreadsheet should be all it takes.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The ATO goes through phases… sometimes they are lenient, other times they come across heavy handed.
The old rule used to be that when there was an argument that something should / should not be included in your tax return then you were safe from penalties so long as you had a reasonably arguable position. I can't see this applying to shoddy record keeping though.
Personally, I'd rather know my records are as they should be than hoping I don't get audited, and, if I do, relying on the mercy of the happy folks at the ATO.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Steve,
The concept of a reasonably arguable position still exists. It comes up when the treatment of an item is in dispute. If a taxpayer can demonstrate a reasonably arguable position they will not be penalised if the ATO finds against them. Notwithstanding, they will still have additional tax to pay and interest thereon.
Lack of adequate records does not involve a dispute with the ATO. It simply means that you can't meet your substantiation requirements to claim deduction and as such, those deductions will be denied. You may also be fined for failing to meet your record keeping requirements.
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