Taxpayer audited by ATO shares hard-won lessons
ABCMost taxpayers think having a receipt is enough to prove to the Australian Taxation Office that their claim for certain tax deductions is legitimate. "The ATO didn't believe that they were my receipts … and said that I now had to provide bank statements for every single charge." Keep records and use a tax agent, Jay says He said, with the benefit of hindsight, his advice to other taxpayers was "use a tax agent". "While receipts are key evidence we review to substantiate a work-related expense, in some cases our auditors may ask for additional information to also confirm that the taxpayer has spent the money, such as bank statements, or to help substantiate that the taxpayer has not been reimbursed for the expense and that the expense was directly related to earning income," she said. Accountant and founder of 5 Ways Group, Paul Meissner, said self-education expenses "seem to attract more than their fair share of attention" and taxpayers should double check them before lodging their return.
History of this topic
Tax office criticised for resurrecting old debts worth billions and causing Australians distress
ABCATO's debt book grows to more than $53 billion as boss Chris Jordan faces Senate Estimates
ABCATO ramps up its focus on rental properties and hosts on platforms such as Airbnb
ABCDiscover Related
