The Most Common Illegal Employee Tax Avoidance Strategies
The top 7 illegal employee tax saving strategies in Australia are:
- Employees or contractors not declaring cash wages.
- Not reporting capital gains on the sale of shares or property.
- Not declaring interest, dividend or rental income.
- Not declaring overseas income like wages, capital gains, rent, etc.
- Claiming private expenditure as a work deduction (like home to work travel, meals and entertainment).
- Filing a tax return on July 1st with inflated earnings and tax withholding, collecting their return seven to 14 days later and leaving the country before their employer has filed with the ATO, and the data can be verified. Popular with some overseas students who are never coming back to Australia.
- Residency manipulation – Where individuals and legal entities attempt to present themselves as residents of a low tax jurisdiction, or of nowhere (e.g. constantly travelling and of no permanent abode).
Similar posts you may like
- Personal branding
Personal branding is the practice of people marketing themselves and their careers as brands. Personal branding is essentially the ongoing process of establishing a Read more
- Increase sales through referral marketing
Referral marketing is a method of generating business from new customers through referrals from established customers and other stakeholders. Whilst often a natural process, Read more
- Net Worth Report
The formula for net worth/equity is assets less liabilities. The assets must be valued at market or realisable values. Periodically calculating the net worth Read more
- Digital Games Tax Offset
The Digital Games Tax Offset (DGTO) provides eligible game developers a 30% refundable tax offset for qualifying Australian development expenditures from 1 July 2022. It Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2