Each year around 3 million people prepare and lodge their own tax return without using the services of a tax agent.
Last year the Australia Taxation Office (ATO) contacted around 400,000 people about discrepancies in their tax return, and 9 out of 10 of those were adjusted.
Visit our Page Which Explains How It Works and follow the steps to lodge your tax online now.
Small Mistakes Can Lead To Big Penalties
Normally when your tax return is prepared by a tax agent, you can expect to receive any refund you are due with a week to two weeks. If there are queries on your tax return, this can delay the receipt of your return significantly.
If the tax department query any part of your return, it is your
obligation to prove to them that what you have declared in your return
If you are unable to supply that proof, the tax department will dis-allow the claim, or add any income they believe you have received to your return, and adjust your assessment accordingly.
Should I lodge my tax for free using Etax, Mygov Or Mytax?
For the relatively small cost of having your tax return prepared by a
registered Tax Agent, the cost of which is tax deductible,
it is well worth the expense to ensure that you do not come under
the Australia Taxation Office’s radar.
This can happen by claiming expenses which you are not entitled to claim or failing to declare income. Secondly, you may not claim all the deductions to which you are entitled, you will then miss out on the refund that you are owed. Both are common mistakes people make when they attempt to prepare and lodge their own tax return.
Visit our How It Works page and follow the steps to lodge your tax online now.
Why Do You Owe Money On Your Tax Return
Watch this video for information on how people can miss out on money they are owed by the ATO by making simple errors when lodging their own income tax return. It is better to use an accountant who can check your income and expenses to avoid problems.
Some of the main errors that the tax department discover with people preparing their own returns are:
– Wrongly claimed travel expenses for travel between home and work
– Claiming for work clothes that are not occupation specific
– Making mistakes in calculating capital gains
– Lodging returns beyond the due date
If the tax department determine that you have claimed something incorrectly in your tax return, or you have failed to declare some income in your tax return, the penalty can be anywhere between 20-100% of the tax avoided, plus interest on the money you owe them.
The other problem with people trying to prepare their own tax returns,
is that often they don’t claim all of the deductions that they are
This can add up to many hundreds or in some cases thousands of dollars in lost refunds.
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