At a recent Press Club event the Taxation Commissioner Chris Jordan gave a speech which he declared that he is “determined to minimise the tax gap”. The gap he is referring to is the difference between what the tax department would collect if everyone paid the correct obligations and the amount that is actually collected.
According to Jordan this gap occurs not only in the big business sector, “There are likely to be bigger gaps in each of those markets [individuals and small businesses] than in the large market,”
Jordan went on to explain while each individual claim (or small business claim) can be small that accumulated sum can produce a large impact on the Australian population. Jordan warned that while some mistakes are legitimate errors, others are caused by carelessness and fraud.
After Jordan’s speech he noted several common deductions that are on the “over claimed” list included property rentals and laundry expenses.
If you are concerned on the legitimacy of any of your intended claims, please contact your Account at Rubiix Business Accountants on (03) 9603 0066 to discuss industry specific information.