The Tax Man Looketh
By Arthure Kassos, CPA
It’s already October, Christmas is only around the corner and that means tax returns for most taxpayers that lodge themselves are now due. The tax department has already processed record numbers of tax returns as people try to get their refunds (if you’re lucky enough not to be paying) early.
One thing to be careful of, and there have been lots of errors, is the Reportable Employee Super Contribution’ box on employees’ payment summaries in the 2009-10 year. This is not meant to show compulsory super payments by the employer. It is meant to be additional super such as salary sacrifice arrangements.
Please check this on your payment summaries, even if you’ve already lodged. If you consider it is incorrect then you must contact your employer for an amended payment summary as this could affect eligibility for certain tax concessional, Centerlink benefits and may even cause you to incur a Medicare Levy surcharge.
If you’re in business the Tax Office has sent out over 100,000 letters to people in cash business. They have used benchmarks they have calculated for most industries and if you fall outside their guidelines’ you will receive one of these letters.
If you believe there is a reason why you are outside their benchmark guidelines give the ATO your explanation. If however you think you’ve made a mistake and you make the necessary amendments, you’ll receive favourable treatment.Tags: Arthur Kassos, sReportable Employee Super Contribution, Tax Returns