Uber drivers, AirBNB owners on the tax man's hit list
Thousands of Uber drivers and AirBNB owners have been warned to watch out, the taxman has their eye on you this year.
With the end of the financial year almost here, the Australian Tax Office has revealed its “hit list” of tax payers set to receive special attention this time round.
Dodgy deductions, fudging the numbers and failing to disclose income will be the focus.
Those earning extra income through Uber or Airbnb should expect some extra attention this year.
Mark Chapman of H&R Block said accountants would also be under scrutiny for exaggerating the work-related personal tax deductions for clients.
“The main thing to be aware of is if you’re in the sharing economy, driving an Uber or renting an Airbnb, you do have tax obligations,” Mr Chapman told News Corp.
“There are a surprising number of people who don’t realise. You can also claim tax deductions as well, so it’s not all bad news.”
He said the ATO was obtaining tax payers’ financial information from third parties including banks or the sharing apps themselves.
This information would be used to match data with returns and identify those who weren’t complying with tax requirements.
The ATO focus this year will be to audit work-related expenses considered “excessive”, according to Mr Chapman.
“[Being audited] happens in a minority of cases, so it’s not something that’s likely unless your claims are significantly out of line with a typical claim, but it’s probably not worth taking the chance.
“The ATO has very clear benchmarks about what people in particular professions should be claiming. If your claims are significantly outside of the benchmark, increasingly they will ask for substantiation.”
The ATO is able to use data to compare tax payers with others in similar roles and income brackets.
While you don’t need receipts for claims of up to $300 you must have actually spent the money and be able to show how you worked out your deduction if asked.
The ATO has warned it would be paying close attention to rental properties located in popular holiday spots in Australia.
Last year it identified a large number of mistakes regarding holiday homes including instances where people were claiming deductions for holiday homes where the property was not genuinely rented out.
ATO’s hit list: What you probably can’t claim this year
• Trips between home and work
• Car expenses that you have salary sacrificed
• Meal expenses for travel
• Private travel or private transport
• Everyday clothes to wear to work even if your employer requires it
• Higher education contributions
• Self-education expenses if the study is not connected with your role
• Private phone or internet use
