What Happens If You Overclaim on Tax?
It is always in your best interest to deduct the maximum amount your entitled, but deliberate attempts to overclaim can definitely attract harsh penalties from the ATO.
Up to 75% of the claim.
The ATO are cracking down on work-related expenses and rental claims as more and more people are working from home.
More people are overclaiming rental expenses, claims for cars, travel, internet and mobile phones.
Records should be kept for the following and remember by tax law you need to keep your tax receipts for 5 years.
These are the following plus always good to keep a electronic copy as paper receipts do tend to fade.
- sales receipts
- expense invoices
- credit card statements
- bank statements
- employee records (wages, super, tax declarations, contracts)
- vehicle records
- lists of debtors and creditors
- asset purchases.
Don’t overclaim on tax and if you are stuck what you can and cannot claim, please contact me direct on 0429 363 047.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
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