Each year the ATO publish their Compliance Program as a heads-up to taxpayers of what they will be focusing on and how they’ll be checking into returns. The idea behind this approach is one of ‘prevention is better than cure’. It is the nice way of letting you know that ‘You’ve been warned.’ 
Incorrectly-claimed work-related expenses
It’s no surprise that work-related expenses has made the compliance list yet again with taxpayers increasingly claiming work-related expenses. In fact, at 30 June, 83% of you had made work-related expense claims on your previous tax return to the tune of $13.6 billion!
Occupations of particular interest
Based on their analysis of claim patterns for the previous year, the ATO will be paying special attention in 2008-09 to claims from:
- - nurses
- - medical practitioners,
- - and chefs.
Employees need to be able to substantiate the value and eligibility of claims in excess of the first $300. The ATO review any claims that are outside normal work-related expenses claim patterns and, if necessary, request additional information to substantiate them.
Claims of particular interest
More generally – not just in these occupations – the Tax Office have stated that they will be looking at anomalous or ‘out of pattern’ claims for self-education, car and travel expenses.
Increased Follow-up
Increased government funding has allowed the Tax Office to focus more on income tax compliance of individuals; it’s not just the big fish who gets looked at anymore. During 2007-08 the Tax Office wrote to 76,200 individuals asking them to either review their work-related expenses claims or to provide further information. Around 19,100 reviews or audits were completed resulting in revenue adjustments of $14.7 million.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
Twitter: @christielewis
{ 1 comment… read it below or add one }
hey this is a very interesting article!