9 mistakes private businesses should watch out for when doing their tax returns
20 July 2021
The Australian Tax Office (ATO) makes extensive use of data matching to identify incorrect claims made by private business taxpayers in their tax returns.
To help you falling foul of the ATO this financial year, here are nine of the most common actions private business taxpayers take that might attract the ATO’s attention.
Failing to register for applicable taxes, keep records or not lodging your tax returns on a regular basis.
Under reporting income that does not match the lifestyle of the business operators.
Reporting income and expenses differently from how other similar businesses report their income and expenses.
Failing to deduct PAYG withholding from employee wages or sending it to the ATO.
Failing to pay superannuation.
Failing to pay the correct amount of FBT or incorrectly accessing FBT concessions.
Incorrectly registered for GST but is not carrying on an enterprise.
Failing to report the income received from government grants.
Failing to correctly manage their private loan or Division 7A obligations.
Working with an accountant can help you avoid mistakes when lodging your tax return as well provide you with opportunities to maximise the return available to you. For help with your business tax return, please speak to your adviser or contact the Findex Tax Advisory team today.