A bit of a late topic and since my tax return is overdue. Ive always been doing my own tax as a salary earner only and am wondering this.
Title related, for those who have worked with accountants, do they just lodge all deductions as $300 or $299.99 and/or not declaring some small income like bank interest to maximise the return? Curious on what they usually do and if they can get away with stuff. I know the ATO does not bother to follow up on some couple hundreds small bux. Do share thanks!
Accountants will submit whatever you tell them to do, but may advise against such transparent and baseless claims.
It would be very surprising if they made undocumented claims like $299 unless their clients agreed.
Where tax returns are pushing the envelope is with items much larger than this. E.g. people claiming inflated work vehicle costs, property expense deductions that are not legitimate, not declaring cash income, and at the top end, structuring income and expenses internationally so that expenses occur in high tax countries, yet income is earned in tax havens.
not declaring some small income like bank interest.
That can not be done. Bank sends interest details to ATO directly, they Will know
You can ask your accountant to do whatever "you" want but the accountant will always give their advice on what the law is / what can/cannot be claimed / what the risk is to "you" / and help you generally.
That said, the ATO has loads of information about "you" already - basically, anywhere/anyone you have provided your TFN to, the ATO will pretty much already know this. So thinking of claiming $1,000 less off your bank interest each year - well forget about it, the ATO already knows what you earned there so don't even bother.
And an accountant will never lodge anything without "you" consenting to it ;)
You may not be aware of it, but accountants have basic information automatically pre entered into the tax returns by the ATO. This includes interest/investment income/social security payments/group certificates, etc. Every year more data is automatically entered and cross referenced. trying to hide income by omission is no longer an easy or particularly viable option for a small taxpayer.
They can, and will, alter the pre entered figures to include additional information YOU supply, but won't delete figures just because you didn't supply them.
As far as 'undocumented claims' there are some deductions that can be claimed without tax invoices, but they will enter deductions based on what you tell them in writing e.g. laundry expenses for work supplied uniforms/ppe. If you are audited you should have details of how you arrived at the claimed figure e.g. 48 weeks at $3 per wash cycle and $2 for Dryer = (48weeks x $5 per week)= $240. I think the max deduction for this is $300 so they should enter $240 based on what you supply. If you figures work out at >300, $300 is the maximum they should enter.
Any accountant willing to intentionally and knowingly submit false returns risks not just their job but their career as well.
The professional CA/CPA bodies revokes memberships for members that engage in dodgy practices. Any accountant that wants to climb the corporate ladder without a CA/CPA in Australia is extremely rare.
However, there is still an element of them relying on the information you provide.
True in theory, in practice very difficult for professional bodies to police members activities unless there is a client complaint or ATO take them to court/revoke their tax agent status.
I was told that the ATO love counting coins like a petty cash float adds up in an office for toilet paper coffee and other expenses. Being a government worker it's easier than a major company audit and you'll always find a fault to make you look productive in a float audit that you can stretch over days to help fill the week.
In the past they didn't, but they've tightened up lately.
Any accountant that knowingly lodges an "inaccurate" tax return for their client(s) risk their job.
https://www.pedestrian.tv/money/ato-cracking-down-dodgy-tax-…