Tradies' 2014 Tax Returns on ATO Hit list

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Tradies' 2014 tax return and sales & marketing managers are on the ATO's 2013-14 hit list. Whether you use a local tax agent, eTax or another online tax return preparation service, here is a checklist to help you meet your tax obligations for 2014.

Of major concern to the ATO is un-declared income and "incorrectly claimed" work expenses.

Un-declared income

The ATO continues to build a strong data matching system.
This processed was assisted last year with the introduction of a reporting system for building contracts - ie to report payments made to sub-contractors directly to the ATO.

Another weapon used in this area is "benchmarking", where the ATO compares tax return information with industry standards to identify anomalies. For example, is the percentage of material costs high for income declared. See this post for an explanation and checklist of benchmarking.

Work expense claims

The ATO has said they will pay attention to high claims made by building and construction labourers, construction supervisors and project managers. The following is a checklist of areas that will be targeted:
  • high work-related travel expense claims
  • poor record keeping
  • incorrect advise
  • deliberately false claims
  • basic errors.
The ATO says "Where a person has made an error due to poor record keeping or a misunderstanding of the law, we work with them to correct their tax return and to improve their understanding of their obligations. Where a person has deliberately lodged a fraudulent return, penalties will be imposed and prosecution will be considered."

See this post for details of the ATO's Benchmarking programme for small businesses and sub-contractors.

If you feel you need assistance with completion of your 2014 tax return we can help you in a number of ways:
  • you can use our web based app at www.eztax.com.au
  • Phone us and we can do many tax return over the phone and with email.
  • Email us with your contact details using the contact form on  the "Contact Us" tax and one of our friendly consultants will contact you.
If  you want further assistance with your tax return or benchmarks, My Tax Zone has the genuine qualifications, skills and experience to attend to your professional accounting and bookkeeping needs.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

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