• I've just started up my own business as a sole trader: what do I need to know about tax?

    Starting up as a sole trader changes the way you report income and pay your taxes. We can make sure that you're ready for the transition, no matter which industry you're from.

    Book a consultation
  • Need accounting software advice and support?

    Our extensive expertise in all aspects of accounting software means you can concentrate on what you do best – running your business. We are accredited Xero specialists and have been MYOB, Intuit and Reckon Partners for many years.

    Learn more about Our Services
  • We want to start our own business: how do we set up the company?

    At PBA Financial Group we specialise in the setting up of start-up and new businesses. We'll set up a solid foundation for your new business so that you can hit the ground running!

    Learn more about Our Services
  • I've always done my own tax returns without the help of an accountant

    More often than not, people who do their own tax returns will miss out on valuable deductions simply because they didn't know what they were entitled to claim, or they incorrectly claim expenses.

    Are you sure your tax return is as accurate as it could be?

    Book an appointment

Latest News

ATO sending 'more letters than ever' on income tax errors

One firm believes the ATO is distributing more letters than ever to taxpayers whose tax returns’ have been flagged as failing their data matching processes.

 

 

The ATO’s new data matching technology is catching out more taxpayers than ever this year according to online tax agents Etax.

This approach was no secret ahead of tax time, with ATO assistant commissioner Kath Anderson reminding accountants and SMEs in June that the ATO would be using real-time data to compare taxpayers with others in similar occupations and income brackets to identify higher-than-expected claims.

Etax senior tax agent, Liz Russell, said that thousands of Australians have received data matching letters, and is urging accountants to work with affected clients to take action.

“If you bury your head in the sand and do nothing, the ATO will make an adjustment based on what it thinks. They can adjust details and remove deductions they’re suspicious about. This could end up costing you hundreds, if not thousands of dollars,” Ms Russell said.

Ms Russell said that while the number of data matching letters being issued has increased this year, it is difficult to ascertain how many findings are from deliberate mis-reporting.

“Taxpayers tend to receive these letters off the back of common mistakes, for example they forgot to include one PAYG summary after switching jobs during the year, or they didn’t realise that bank interest, allowances and Centrelink payments like Newstart and Youth Allowance, are classified as income and must be declared on your tax return,” Ms Russell said.

“This year, we are seeing more data matching letters being issued, but that doesn’t mean more people are doing the wrong thing. The ATO’s latest technology helps it cast a wider net and catch more errors or unusual deductions claims.”

 

LARA BULLOCK
15 Sep 2017
accountantsdaily.com.au