Flight back to UK to inspect property - Claiming tax
#16
BE Forum Addict
Joined: Mar 2009
Posts: 1,289
Re: Flight back to UK to inspect property - Claiming tax
I've got experience of both the UK and the Aus system. And my - purely personal - view is that in the UK you can get away with some very "creative" tax accounting (claiming, not disclosing etc), but here in Aus this is much more limited.
#17
BE Enthusiast
Joined: Apr 2005
Location: Melbourne
Posts: 629
Re: Flight back to UK to inspect property - Claiming tax
Back in the 1980's/1990's the Chatswood (Sydney) office of the ATO used to have a "squad" of officers who used to drive around the North Shore to see who was having renos done, European cars on the forecourts, pools installed etc. They would then go back to the office and reconcile that to the relevant address's taxable income. Unbelievable but the truth!
What really annoys me now is just how rampant the "black economy" is and yet the ATO seem to turn a blind eye to it. A few years ago I worked for a couple who lived in a $4m home on The Esplanade, Brighton. All this money had been made from selling BBQ chickens! I know for a fact that a good portion of their income never went thru the books. What really wound me up was that they didn't pay the super contributions on behalf of their mostly young, niave workforce.
When we were recently negotiating with builders there were quite a few who "demanded" 20% of the job in cash. (We are talking about a $500k reno!) All well and good for some but if you are a PAYG earner you have very little opportunity to reduce your tax bill
#18
Guest
Posts: n/a
Re: Flight back to UK to inspect property - Claiming tax
Yes. They also do "random" checks, where they just pick out any odd return. And they do audits on particular areas, for example self-education claims, motor vehicle claims.
I've got experience of both the UK and the Aus system. And my - purely personal - view is that in the UK you can get away with some very "creative" tax accounting (claiming, not disclosing etc), but here in Aus this is much more limited.
I've got experience of both the UK and the Aus system. And my - purely personal - view is that in the UK you can get away with some very "creative" tax accounting (claiming, not disclosing etc), but here in Aus this is much more limited.