Money Doesn’t Come Without Guidance ...
Tax time is coming. If you ever find yourself struggling whether to hire a tax professional for your tax return or your business tax return, here are some good reason why you have to use a professional service.
1. You have complex income.
– Whether you are single or married, working as an employee or sole-trader, the situation can go very complicate. The fact is, regarding your occupations, income sources and marital status, there are many factors influence your income tax return. Furthermore, if you own properties for living or investment, it will most certainly add more burden when it comes to assessing your tax return. Worst case, you might end up being more confused after spending your precious time in the online searching relevant information regarding your obligation and possible entitlements and deduction. If this is your case, using a tax professional service definitely better off for your time and money as it not only does the job in a timely manner, it also looks for your best interest whether it’s reducing payable or increasing refund.
2. You are worried that you might make a mistake and ATO comes after you.
– The chances are, if you do your income tax return by yourself and made an incorrect statement; the responsibility is on you. In some icomplnstances, you have to provide evidence regarding your expenditures and claim you made to ATO and if you can’t provide it, will cause a problem. Whether you intended to or not, the consequences might be harsher than what you expect. ATO provides following guidelines regarding shortfall amount can be penalised.
The base penalty is a percentage of the shortfall amount. The percentage used is determined by the behaviour that led to the shortfall amount:
Failure to take reasonable care: The base penalty is 25% of the shortfall amount. Generally, you fail to take reasonable care if you have not done what a reasonable person in the same circumstances would have done.
Recklessness: The base penalty is 50% of the shortfall amount. You are reckless if a reasonable person in your circumstances would have been aware that there was a real risk of a shortfall amount arising and you disregarded or showed indifference to, that risk.
Intentional disregard: The base penalty is 75% of the shortfall amount. You intentionally disregard the law if you are fully aware of a clear tax obligation and you disregard the obligation with the intention of bringing about certain results (underpaying tax or over-claiming an entitlement).
3. You are in financial hardship.
– You are struggling with your financial and you can’t afford to have more tax payable regarding your income earned. When it comes to a legal obligation, it is best to be straightforward with your status and fail to do so indeed causes more harm. However, even if you can’t afford lumpsum payment for your total amount of debt, a professional service can negotiate sustainable options with ATO for your best interest.
4. Get tailored advice regarding your circumstances.
– Not a single one case is same when it comes to tax affairs. The long-term benefit of using a professional tax service is that it sees the big picture of your finances. Whether you are individual or business owner, you can get tailored advice depends on your interest. Before making a financial decision, which will make a significant impact on your financial, get advice from a professional tax service will reduce the risk.
5. It is deductible expenses.
– Finally, expenses incurred in relation to managing your tax return is all deductible in following year! Although the expense will be able to claim in the following financial year, the benefit of using professional service is indeed, outweigh the cost!