Tax Audit Outcomes – Common Mistakes to Avoid

By
R J Sanderson & Associates Pty Ltd
Published on 
October 13, 2023
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Navigate tax audits with confidence and peace of mind. Learn how to avoid common mistakes with expert guidance from RJ Sanderson & Associates. Take the stress out of tax today.In the complex world of taxation, audits are a reality that many individuals and businesses must face. We delve into common mistakes individuals make during tax audits and how to avoid them, ensuring a stress-free tax season.

Motor Vehicle Claims

Option 1: Diary Records

If you opt for diary records up to 5,000 km, it's crucial to maintain accurate logs.

Option 2: Log Book Analysis

Alternatively, you can choose a log book percentage analysis for 12 weeks.

Common Requirement

Under both methods, it's compulsory to have a record of your odometer reading at 30 June each year. Ownership of the car is also a requirement, unless there's a finance agreement or special arrangement with a family member.

Evidence for Tax Deductions

A bank statement alone is insufficient to support a tax deduction claim. You must keep the original receipt or invoice as evidence to ensure compliance and accuracy.

Mobile Phone Claims

If you claim a percentage of your mobile phone expenses, it's mandatory to have one detailed monthly bill per month with business calls marked. This helps in accurately determining the percentage of business use.

Tools and Equipment

If you purchase tools or equipment for work, be prepared to explain how these are used in your professional activities. Vague or incomplete explanations can lead to complications during an audit.

Need Assistance?

Tax season can be a daunting experience, but with the right guidance and meticulous record-keeping, you can navigate them with confidence. RJ Sanderson & Associates offers invaluable expertise in taxation and a range of other financial services.

For more information on how RJ Sanderson & Associates can assist you in achieving a stress-free tax season, call 1300 27 28 29.

This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.

R J Sanderson & Associates Pty Ltd
Last modifed
October 13, 2023

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