BAD DEBT WRITE-OFFS
Bring to account all bad debts that are classified as “Bad Debts”. If you fail to account for them you will be paying tax on the profits without allowing for any write-offs. There are procedures to follow with these write-offs.

MOTOR VEHICLE LOG BOOK
Make sure that your log book is up to date. Remember that City Link and East Link have excellent records to match your tips.  The ATO will match these records in an audit.

CAPITAL GAINS
The State Revenue Office and the ATO are clamping down on properties that have been sold, without declaring the taxable profits. These departments are now becoming more IT savvy in matching records with each other.

SHARE LOSSES AND BUYING BACK
Many investors crystallize capital losses on their share portfolio by selling their shares as at June 30 and re-purchase them the next day; this exercise may not be given the seal of approval by the ATO, check before you re-purchase the shares.

D.I.Y. SUPERFUNDS
The tax office is auditing many D.I.Y. funds to confirm that moneys invested and withdrawn are in accordance with the Act. It is not a personal bank account. If you have invested funds in paintings, collectibles etc. or such items please ask your accountant if these investments comply with the Act.

RE PAYMENT OF INTEREST
The pre-payment of interest for up to 12 months on margin lending and property investment portfolios is permissible. However, the paperwork needs to be documented correctly. Please check with the Bank or Financier to make sure that prior to paying the interest it does conform with Tax Rules. If in doubt again call your accountant. By pre-paying your interest you will effectively save tax and reduce your interest bill.

FRINGE BENEFITS TAX
The FBT has many tentacles and regularity of benefits do require close inspection. If for instance an expense is reimbursed and it occurs every month you may well be incurring a tax liability with realising it.

INVESTMENT ALLOWANCE
The government introduced an investment allowance in December 2008 allowing businesses a deduction up to 50% on items such as motor vehicles, equipment and any business related purchases during the financial year. These will now need to be documented in order to claim the deduction.

10 costly tax mistakes courtesy of Eureka Reports, Read more ...