Alan G Garbellini FCPA in Glen Waverley, Victoria, Australia | Tax preparation service

Alan G Garbellini FCPA

Locality: Glen Waverley, Victoria, Australia

Phone: +61 3 9562 0178

Address: 42 Paxton Drive 3150 Glen Waverley, VIC, Australia

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• Business service
• Tax preparation service
• Accountant

23.01.2022 The Australian Taxation Office (ATO) has revealed some common mistakes that a lot of taxpayers make when they lodge their tax returns. https://www.ato.gov.au//Media-re/How-to-nail-your-return/ On the top of their list, the following four are the most common ones highlighted:- 1. Lodging before all your prefill data is available or failing to report all your income The ATO’s prefill data is usually completed by mid-August every year. They suggest the taxpayers wait for a fe...w weeks before lodging if they reply on the prefill data. 2. Claiming the wrong thing You should always remember the ‘three golden rules’ to claim expenses. You can also check the ATO’s occupation guides and accompanying posters for specific occupations to work out what you can claim. https://www.ato.gov.au//Occupation-and-industry-specific/ 3. Forgetting to keep receipts Always remember to keep good records for the claims receipts or diary of how you calculate your claims. myDeductions in the ATO app may be a good tool to use. 4. Claiming for something you never paid for To make a claim legitimate, you must have spent the money. Nobody is entitled to an automatic ‘standard deduction’.

09.01.2022 < ATO’S FOCUS ON INCORRECT TAX CLAIMS ON RENTAL PROPERTIES > Since earlier in 2019, the ATO has been conducting random audits on a sample of individual tax returns with rental property claims and revealed that nine out of ten of the returns contained errors. The ATO believes that there is a substantial ‘tax gap’ for individuals and starts to pay more attention to individual taxpayers not in business. The common incorrect claims that ATO has found include:-... 1) incorrect interest claims for the entire investment loan where it has been refinanced for private purposes; 2) incorrect classification of capital works as repairs and maintenance; 3) not apportioning deductions for holiday homes when they are not genuinely available for rent. When the ATO audits they are focusing on whether a property/home is genuinely for rent or being described as a rental property, when it was not truly on the market. The ATO will be asking questions like Are you renting it to friends, or not really renting it at all ... but you’re claiming all your deductions? They are also looking at where the owner is claiming all the expenses for the property, but the owner has actually used quite a bit for yourself for private purposes. The ATO has also pointed out that it is incorrect to claim all the interest and other costs relating to loan facilities that originally established to finance a rental property but was drawn down for improvement or renovations for the taxpayer’s own private home. Only the portion of the original loan for the rental property can be claimed. The ATO also reports that there are significant increases in claims for some particular expenses, including cost of land tax (up 37 % in two years), cleaning expenses (up 19%), borrowing expenses (up 18%), advertising (up 17%) and legal fees (up 16%). There are the areas that the ATO will keep looking at in the future. In order to identify questionable deductions (including the above listed), the ATO now uses not only just the financial institution and property transaction data, but also information from online accommodation booking platforms. According to the ATO, more than two million Australians report rental income through tax returns each year, and this number is rising. 85% of the taxpayers with rental properties are represented by a tax agent. If you have any questions about your rental properties, especially when you are buying or selling a rental property, doing renovations or refinancing, please feel free to contact our office to talk to one of our professional accountants.

07.01.2022 It is the time of the year for Christmas again We would like to inform you that our office will be closed from 2:00 pm 20th December 2019 to 17th January 2020 inclusive for the Christmas and New Year period. We will re-open at 8:00 am Monday 20th January 2020. We would like to thank all our valued clients for your kind support in the past year and wish you all a very Merry Christmas and Happy New Year! We look forward to assisting you with all your accounting and tax needs in the coming 2020!!

06.01.2022 The Government is to put a legislation before federal Parliament in 2019 to impose criminal offences for individuals and businesses who pay or receive large amounts in CASH. As result of the final report of the Black Economy Taskforce to tackle criminal activities such as tax evasion and money laundering, the draft Bill titled Currency (Restrictions on the Use of Cash) Bill 2019 proposes to penalise cash payments of $10,000 or more by criminal offences up to two years of imp...risonment and hefty fines up to $25,200. The proposed legislation, if passed, will become effect from 1 January 2020. The $10,000 cash payment limit will apply to a single supply of goods/services or a series of payments for the same supply. There are a number of payments excluded from this rule, which includes personal or private transactions, payments that must be reported by an entity under AML/CTF Act (anti-money laundering and counter-terrorism legislation), payments made or accepted by a public official who is legally required to make or accept a cash payment in the course of their duties (for instance, ATO requires big tax debts to be paid in cash). Besides, cash-in-transit providers will be exempt from the cash limits too, as well as the cash deposits or withdrawals from financial institutions.

02.01.2022 < DIRECTORS’ RESPONSIBILITIES FOR COMPANY TAX LIABILITIES > Under the Tax Law, a company has the obligations for pay as you go (PAYG) withholding or super guarantee charge (SGC) for its employees. If a company does not meet these obligations, the directors of the company can be made personally liable by a way of director penalties equal to the unpaid/overdue amounts of the company’s liabilities. According to Div 268 of Schedule 1 to the TAA, the Commissioner can make estimate...s on the unpaid/overdue amounts that he thinks reasonable. To notify the company or its directors about the estimate, the Commissioner must give a notice in writing with all the details which include the identification of the underlying liability (i.e., whether it is PAYG withholding or, TFN withholding or other withholding), the date of the estimate, the amount of the estimate, due date of the estimate payable, and information about how the estimate may be reduced or revoked. When a director has the tax debts from the director penalty notice (DPN) in his personal account and the corresponding parallel liability on the company’s account, any payments that the director makes will be allocated firstly against the company’s earliest tax debts before it is used to reduce the director’s personal outstanding penalties, which reflects Parliament’s intentions to prioritise businesses’/employers’ obligations to employee entitlements. A director can take action to have the penalties remitted within 21 days after the DPN is given to him. The 21-day period commences from the date the Commissioner posts or leaves the DPN to an address of the director’s place of residence or business, or that of the director’s registered tax agent. It isn’t the issue date in the DPN or the date when the DPN is received. It is proposed that this rule will be expanded to goods and services tax (GST), luxury car tax (LCT) and wine equalisation tax (WET) liabilities.