With tax time fast approaching, I thought I would share with you the key topics that the ATO have announced that they will be focusing on strongly in 2022.
The ATO have announced that they will be appropriately scrutinizing on reporting of income and deductions in the following areas. And will be strictly ensuring that they are done correctly.
The four areas are:
- Record-keeping
- Work-related expenses
- Capital gains from crypto assets, shares and property
- Rental property income and deductions
The Assistant Commissioner, Tim Loh, stated that “The ATO is targeting problem areas where we see people making mistakes.”
It is imperative that you take into consideration the following:
- You spent the money yourself and you were not reimbursed for it
- You can only claim the portion that relates to the producing income if an expense is for a combination of income production and private use
- In order to prove it, you must keep a record of it
When it comes to record-keeping, being well organized is key to ensure a more efficient tax-time. Now is the time to get on top of your income and deduction records. And anyone that tries to falsify records or cannot prove their claims, the ATO will be on to.
Work-related expenses have now expanded to at-home expenses, as many are still continuing to work from home, post-COVID19 lockdowns. There are a few different methods that can be used here, so talk to your accountant about which option is best for you.
Capital gains from crypto assets, shares and property will all need to be calculated as either a capital gain or a capital loss and subsequently recorded. Even non-fungible tokens (NFT’s) must also be calculated. I have explained this in great detail to my clients, and as such, they understand what this means for their tax obligations.
With so many people in Australia now trading digital coins and assets, the ATO has extensive data processing capabilities – and will be enforcing their protocols now, and forever into the future. There is no excuse to not being on top of your tax. If you need assistance, please contact me or your Professional Accountant.
Greg Valles, Managing Director
