Report your undisclosed income streams from foreign countries
Pursuant to the Common Reporting Standard (CRS) – a new global standard on the automatic exchange of financial information – banks and other financial institutions in different countries must report financial information of both individual foreign tax residents and entities (e.g. companies, trusts or partnerships) with which they have a special relationship, to the tax authorities in the different countries.
Such data received by the overseas tax authorities will then be exchanged with the ATO as from September 2018.
With this data matching initiative, it is much easier for the ATO to check whether resident taxpayers have disclosed all their income from overseas sources in their tax returns.
Please speak to your Nexia advisor so that we can examine your particular facts and circumstances and help you to be fully tax compliant by disclosing all your offshore income on your tax return.
Do you need help with your GST reporting?
When we review business activity statements (BAS) prepared by our clients or other accounting firms, we often pick up mistakes which we correct before we lodge the BAS to keep track of GST obligations.
Set out below are some of the most common errors we have encountered and how we have corrected the mistakes:
Mistake: Incorrect timing of GST transactions
What should have been done? Report GST transactions for the correct tax period (e.g. time of making the supply if cash basis or time of issuing the tax invoice if accruals basis)
Mistake: Wrong numbers on BAS
What should have been done? Check for accidental miscalculations or transcription errors
Mistake: Unsubstantiated claims for GST credits
What should have been done? Only claim GST credits on claims that can be substantiated (e.g. have a valid tax invoice)
Mistake: Incorrect claims of GST credits on purchases made for personal use
What should have been done? Only claim GST credits on goods purchased for a creditable purpose
Mistake: Not charging GST when exceed the $75,000 turnover threshold
What should have been done? Charge GST if the $75,000 GST threshold is passed
Please speak to your Nexia advisor if you need help in completing your business activity statements for GST purposes.
Evolution of tax fraud scams
Since our previous warning about tax scams, we understand there is a new scam doing the rounds where individuals are called by telephone and tricked into revealing their tax agent’s name. Subsequently, the individual is called by another scammer that claims to be from the tax agent’s practice (i.e. an attempt to lend legitimacy to the call).
If you receive any such suspicious phone calls, please do not provide any information. We would strongly suggest that you hang up immediately and contact us as soon as possible so that we can bring this to the attention of the ATO.
The ATO will never demand immediate payments, threaten individuals with arrest or request payment by unusual means (e.g. store gift cards or cryptocurrency) over the phone.
Please also be aware that your Nexia advisor can, at any time, ascertain what taxes are owed and the relevant payment date(s). If you are unsure about the amount of tax you owe, please check with your Nexia advisor before payment.