Some of what we have heard and even seen lately, has been nothing
short of astonishing. What is really alarming is that most taxpayers have never
even considered, that by signing their income tax return to claim a tax refund,
rebate or offset that they were not legally entitled to, they are committing
Refund Fraud. And yes, that is a Tax
Crime and it is illegal.
Now don’t get us wrong, at Sothertons Gladstone, we are all
for minimising tax and maximising refunds legitimately,
within the parameters of the tax legislation, however, we will not be party to
fraudulent claims.
We were asked to review an individual income tax return this
week because the taxpayer received a $70 tax refund in 2013, but he’s due to
receive a tax refund of over $5,000 for the 2014 year. He thought this seemed strange and so sought
a second opinion. What we found was that
over $14,000 in deductions had been claimed and the taxpayer really couldn’t
explain what these deductions were, let alone able to substantiate them. He didn’t even receive a full copy of his
return. He had put his complete faith in
the registered agent preparing his return to determine what deductions he
should claim.
The problem with having “complete faith” in someone else to
do your return, is that it is YOU who will be required to repay any
over-claimed tax, along with substantial penalties and interest, not the
preparer of your return.
So our recommendation to all taxpayers is to be sure they
are using a reputable, registered tax agent, and that they fully understand
their income tax return and the deductions, rebates and offsets claimed. Do not
be afraid to ask questions or ask for an explanation.
At Sothertons Gladstone, we are experienced Chartered
Accountants and Registered Tax Agents, call us on 07 4972 1300.
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