Reasons why you should use the services of a Tax Agent
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To ensure your tax return is prepared correctlyNo one really enjoys preparing a tax return. Not only that, it can be quite difficult and confusing and mistakes can easily be made despite using e-tax or following the Tax Pack – and rest assured, the ATO will discover these mistakes with their ever extending compliance programs and data-matching systems! About 73% of the population use a tax agent, and that percentage increases to 95% for businesses. Some people find that they do not have the time or the ability to deal with the complexities of the tax legislation. If there are matters that you do not completely understand it is advisable to enlist a tax specialist to review your situation. Complex tax issues such as depreciation, capital gains tax, property ownership, business ownership etc, more than likely require special attention. Many individuals, and certainly the majority of businesses, are more at ease knowing that their taxation affairs have been completed correctly and accurately. All fees paid in relation to tax preparation are tax-deductible provided that the fee has been charged by a Registered Tax Agent. ATO Data MatchingThe ATO has extensive data-matching abilities allowing them to match your tax return data with Centrelink, banks, building societies, land titles office, Australian Stock Exchange and managed funds. Penalties for MistakesIf you underpay your tax, a penalty may be issued by the ATO. On the contrary, you may penalise yourself by paying more tax than you need to! Therefore it is worth the extra cost of having an accountant or tax agent prepare your return. If the ATO does not issue you with a penalty for a mistake or omission on your tax return, you will be charged interest on any underpayment of tax. The rate of interest charged on under or late payments is currently 10.30% (December 2009 quarter). Extension of time to lodge and payEach year, individual taxpayers are required by law to lodge their tax returns by 31 October of the same year. If you are owed a tax refund, the Tax Office is usually not too concerned as you are effectively penalising yourself. If, on the otherhand, you owe money to the Tax Office you will be penalised for late lodgment at the rate of $110 per month, and up to $550 within another four months. Furthermore, you will be charged interest on the outstanding tax backdated to 31 October of the applicable year. If you register with a tax agent prior to 31 October, you may have up until the 5th June of the following year to lodge AND pay any outstanding tax with no penalties and no interest. To receive this concession you must be registered with a tax agent by 31 October and then also lodge your return via a tax agent. Quicker Refunds – Not really trueThere are many reasons to use the services of a tax agent, as listed above, but using a tax agent does not mean that you will receive your refund any sooner. Regardless of whether you lodge your tax return yourself using e-tax or through a tax agent, you should still receive your refund within around 14 days. Why engage Platinum Accounting & Taxation as your Tax Agent?We guarantee our clients a professional and high level of service at the most affordable price. Paying more for your tax to be prepared does not necessarily mean “better”, and here’s why: all Registered Tax Agents are governed by a Professional Code of Conduct (a legislated code that sets out the professional and ethical standards required of registered tax agents). Therefore all tax agents must provide their clients with a highly professional service at all times – so why pay more than you need to?
Appoint Platinum Accounting & Taxation as your Registered Tax Agent to ensure that you secure the maximum refunds and minimum tax bills that are legally possible. National: 1300 794 940 |
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