Latest Shouts In The Shoutbox -- View The Shoutbox · Rules Collapse  


 
Add Reply
New Topic
New Poll

 Tax dodgers and fudgers cost Federal Government $8
scepo
 Posted: Jul 12 2018, 04:35 PM
Quote


Supremo Poster


Group: Moderators
Posts: 16538
Member No.: 3
Joined: 21-July 11

Status: Offline
Rep: 66 pts






Tax dodgers and fudgers cost Federal Government $8.7 billion in a year



user posted image


Photo: The Australian Government lost out on billions in 2014-15. (AAP: Dan Peled)


If you've ever exaggerated your work expenses to get a bigger income tax return, then you might have contributed to the Federal Government's $8.7 billion loss in 2014-15.

Key points:

: Tax Office calculates that $8.7 billion in government revenue was lost from income tax alone

: Accountants believe it's a "wake-up call" and is down to hidden income, false deductions and errors

: ATO pledges to increase audits targeting those who deliberately fudge their returns.



The Tax Office (ATO) has calculated what's known as "the tax gap" for individual taxpayers, which is the discrepancy between the amount of tax that should have been paid and what was actually paid.

The $8.7 billion figure has surprised many tax professionals, who believe it reveals the hidden cost of people hiding their cash incomes, fudging their expenses or lying about rental income.

The Institute of Public Accountants believes the figure is "a wake-up call" and the peak body CPA Australia says the amount of lost revenue is "enormous".

"When you compare it to multinational tax avoidance, where the figure is about $2.5 billion, it's some three times larger … that was really a surprise," CPA Australia's head of tax policy Paul Drum said.

The ATO's deputy commissioner, Alison Lendon, says the multi-billion-dollar loss is primarily due to people making simple and avoidable mistakes in their tax returns.

About 9.3 million Australians lodged a personal income tax return in 2014-15 and Ms Lendon says many small mistakes made can quickly add up to billions of dollars in lost revenue.

Watch out for these deductions
Ski holidays, Maltese terriers and streaming services; taxpayers have tried to claim all manner of expenses in the past, but the ATO is ready to clamp down this year.


Almost three-quarters of the 858 cases examined in the ATO's audit contained errors or deductions people were not entitled to.

While some of $8.7 billion loss can be dismissed as simple errors, Ms Lendon says some people are deliberately committing fraud to ensure they get a better tax return.

"There is evidence in the community of people obviously wanting to get a big refund and a way to do that is looking at what expenses they can claim," Ms Lendon said.

"There is also a group that we have seen through our random audit work that are more deliberate in their overclaiming and quite aggressive."

Tax agents more likely to make errors

Mr Drum said he was also surprised that professional accountants were more likely to have made errors than people submitting returns themselves.

The ATO is worried that some agents may be deliberately falsifying documents to ensure their clients get larger returns, and to continue to do business with them.

Handy tips to avoid unwanted ATO attention:

Don't claim unless you're out of pocket — so if you've already been reimbursed by your work, you can't claim again

Anything you claim as a work deduction must directly relate to earning your income — just because you wear a suit to work doesn't mean that counts as a uniform

Keep a record of work expenses — receipts, bank statements or diary entries

Check out the ATO's income tax guide if you're unsure about any of your deductions


Ms Lenson said the Tax Office would take harsh action against accountants found to be negligent.

"Particularly when we look at those we consider high risk, that is where they are deliberately overclaiming and sometimes falsifying documents," Ms Lendon said.

"We take a harsh view on them, as the community expects."

CPA Australia's Paul Drum said people expect integrity from tax agents and often paid them because they wanted to make sure they were complying with the law.

"It raises the question whether [tax agents] are asking all the relevant questions of the client in the first place and whether more work should be done there," Mr Drum said.

But Tony Greco from the Institute of Public Accountants said tax agents often rely on incorrect information provided by their clients.

"Sometimes agent prepared returns are based on client assertions and agents are not required to audit all of their assertions," he told the ABC.

Mr Wood said the $8.7 billion was an estimate at best and not a surprise, given so many people lodged tax returns.

"The surprising aspect is the fact it is much larger than the corporate [tax gap]," he said.

ATO pledges to increase audits

Ms Lendon has also issued a warning to those who may deliberately fudge their returns, foreshadowing more audits and preventative action.

The revenue office has recently received a $130 million funding boost, which Ms Lendon says will help the agency address compliance issues and tackle fraud.

At the moment, the Tax Office recoups about $500 million a year in lost revenue. It expects to increase that to about $750 million a year over the next four years.

"We will be doing more audits so our actual coverage and interaction across the whole individual system is going to increase quite considerably this year," Ms Lendon said.

"We are expecting to touch at least 1 million people through the work we are doing."



http://www.abc.net.au/news/2018-07-12/personal-income-tax-dodgers-cost-federal-government-billions/9982526


Hmmmm.


Surprise, surprise. http://fairdinkumnewschat.com/rolleyes.gif

--------------------
Everybody is Willing:
Some are willing to work, the rest are willing to let them!

The older I get, the better I was.
PM
^
Charles
 Posted: Jul 12 2018, 05:29 PM
Quote


Dentus Chookus


Group: Featured Blogers
Posts: 9129
Member No.: 17
Joined: 17-January 12

Status: Offline
Rep: 144 pts






Contra deals (Definition: Barter arrangement between two parties who exchange goods or services without any cash changing hands.) would also be a major channel of tax avoidance. There are even groups (Barter Card is one) that organise these exchanges.

--------------------
“If life were predictable it would cease to be life, and be without flavor.” - Eleanor Roosevelt

“All of life is peaks and valleys. Don’t let the peaks get too high and the valleys too low.” - John Wooden
PMEmail
^
lee
 Posted: Jul 12 2018, 05:41 PM
Quote


Rana Capillum


Group: Active Member
Posts: 7341
Member No.: 48
Joined: 15-February 12

Status: Online
Rep: 17 pts






No, NO it is those evil multinationals I tells ya.
QUOTE (Charles @ Jul 12 2018, 03:29 PM)
Contra deals (Definition: Barter arrangement between two parties who exchange goods or services without any cash changing hands.) would also be a major channel of tax avoidance. There are even groups (Barter Card is one) that organise these exchanges.


yep. Barter Card are supposed to keep records of these transactions as they are income to the recipient..

--------------------
Life is neither a race to the end, nor a slow ramble whose sole aim is longevity

Do not regret growing older. It is a privilege denied to many.
PM
^
scepo
 Posted: Jul 13 2018, 12:36 PM
Quote


Supremo Poster


Group: Moderators
Posts: 16538
Member No.: 3
Joined: 21-July 11

Status: Offline
Rep: 66 pts






The thing that struck me about this article is the fact that greed, fraud and I guess corruption are right across the board, not just the top end or the big end of town. http://fairdinkumnewschat.b1.jcink.com/uploads/fairdinkumnewschat/smiley_don_t_know.gif

The socialists won't admit to that of course. http://fairdinkumnewschat.com/rolleyes.gif http://fairdinkumnewschat.com/wink.gif

--------------------
Everybody is Willing:
Some are willing to work, the rest are willing to let them!

The older I get, the better I was.
PM
^
Bear
 Posted: Jul 18 2018, 06:41 PM
Quote


Diamond


Group: Active Member
Posts: 2350
Member No.: 79
Joined: 7-August 13

Status: Offline
Rep: 10 pts






QUOTE (scepo @ Jul 13 2018, 12:36 PM)
The thing that struck me about this article is the fact that greed, fraud and I guess corruption are right across the board, not just the top end or the big end of town.  http://fairdinkumnewschat.b1.jcink.com/uploads/fairdinkumnewschat/smiley_don_t_know.gif

The socialists won't admit to that of course.  http://fairdinkumnewschat.com/rolleyes.gif  http://fairdinkumnewschat.com/wink.gif


: Tax Office calculates that $8.7 billion in government revenue was lost from income tax alone

: Accountants believe it's a "wake-up call" and is down to hidden income, false deductions and errors

: ATO pledges to increase audits targeting those who deliberately fudge their returns


Tax evasion has been going on for years, as usual, the fraudsters have been getting away with it because of slack regulation. How many 'wake up calls' do they need. http://fairdinkumnewschat.b1.jcink.com/uploads/fairdinkumnewschat/smiley_don_t_know.gif

The Seven Wonders of Socialism.


1. Everybody is employed.
2. Although everybody is employed, nobody works
3. Although nobody works, everybody fulfills the plan.
4. Although everybody fulfills the plan, there are no goods.
5. Although there are no goods, everybody has everything.
6. Although everybody has everything, everybody steals.
7. Although everybody steals, nothing is ever missing.



What's the difference between capitalist hell and socialist hell?


In capitalist hell, the damned must lie on a bed of nails while a steam roller drives over them. In socialist hell, it is exactly the same, except sometimes there are no nails, sometimes the steam roller is broken and sometimes the driver is too drunk to work.

http://fairdinkumnewschat.com/wink.gif

--------------------
Politicians and diapers should be changed frequently and all for the same reason.

~José Maria de Eça de Queiroz,

We live in a world in which politics has replaced philosophy. ~Martin L. Gross, A Call for Revolution, 1993

"Stupid people are like glow sticks: I wanna snap em and shake the shit outta them till the light comes on."
PM
^
Michael.W
 Posted: Jul 18 2018, 11:10 PM
Quote


Gold


Group: Active Member
Posts: 2783
Member No.: 58
Joined: 26-April 12

Status: Offline
Rep: 47 pts






Perhaps if the Taxation system wasn't so complicated there would be no need for accusations of taxation dodgers.

I think its very hard to quote of 8.7 billion loss in tax revenue when the majority of people employed at the taxation office are just as frustrated with the level of complexity of the laws. Kerry Packer stated that nobody knows them or understands them. I reckon he was right. Not much has changed.


The only thing that changes in taxation is politicians perception of what they think there entitled too.
PM
^
0 User(s) are reading this topic (0 Guests and 0 Anonymous Users)
0 Members:

Topic Options
Add Reply
New Topic
New Poll