ATO is targeting five common mistakes this EOFY - here's how to avoid them
- Claiming of private expenses in the business.
- Failing to properly attribute personal and business use.
- Misunderstanding how tax applies to different and often complex business structures.
- Omitting income, including coupon sales.
- Not providing the necessary records for substantiating expense claims.
The ATO says it has three golden rules for businesses claiming expenses.
- Ensuring money has been spent on your business and not for personal use;
- Where there is a mix of business and personal use, only claim the business portion; and
- Ensure adequate records are provided to substantiate expense claims